A worksheet is a multiple-column form that companies use in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working tool. It is not a permanent accounting record; it is neither a journal nor a part of the general ledger. The worksheet is merely a device used in preparing adjusting entries and the financial statements. Companies generally computerize worksheets using an electronic spreadsheet program such as Excel.
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- Stockholders’ equity
Stockholders’ equity is the ownership claim of shareholders on total assets. It is to a corporation what owner’s equity is to a proprietorship.
- Contra asset account
Accumulated Depreciation- Office Equipment is a contra asset account which is an account offset against an asset account on the balance sheet.
- Prior period adjustment
The correction of an error in previously issued financial statements is known as a prior period adjustment. The company makes the correction directly...
- Contingent liability
Contingent liability is a potential liability that may become an actual liability in the future. Using the following guidelines, companies should report contingent liabilities:
- Specific identification method
Specific identification method refers to an actual physical flow costing method in which items still in inventory are specifically coasted to arrive at the total cost of the ending inventory.
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- Managerial accounting
Managerial accounting also called management accounting, is a field of accounting that provides economic and financial information for managers and other internal users.