Final answer:
In accounting, a closed period does not allow for new entries, but adjustments can be made to transactions. Changes are documented and explained to maintain accurate records.
Step-by-step explanation:
In accounting, a period refers to a specific timeframe during which financial transactions are recorded. Once a period is closed, it means that no more entries can be added to its records. However, it is possible to make changes or corrections to transactions that occurred in a closed period.
For example, if an error is identified in a transaction that was recorded in a closed period, the correction can be made by creating what is known as an adjusting entry. This adjusting entry allows for the correction of errors without directly modifying the closed period's records.
It is important to note, though, that changes made to transactions in a closed period should be documented and clearly explained to maintain accurate financial records.