Answered: Describe two ways in which the concept…

Describe two ways in which the concept of materiality may save accountants' time and effort in making adjusting entries.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 5A: The bookkeeper has completed a work sheet and has journalized and posted the closing entries, but he...

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Question

Describe two ways in which the concept of materiality may save accountants' time and effort in making adjusting entries.

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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