Account balances sitting in general ledger “T” accounts do not provide a very useful format for accessing accounting information. Periodically, accountants need to compile the information in the general ledger into the basic financial statements: the balance sheet and income statement. How often should this happen? From a manager’s point of view, basic financial statements should be prepared in a timely fashion so any unexpected trends in revenues and expenses can be detected and addressed. Most businesses find monthly statements adequate, although firms operating under very stable economic conditions find quarterly or annual financial statements sufficient.
|
|
Scooped by
Peter John Baskerville
onto Basic Accounting Concepts November 16, 2011 2:04 AM
|
Your new post is loading...