Question

The worksheet:

A. replaces the financial statements.
B. is prepared at the beginning of the period to ready the permanent accounts for the activity that will occur during the period.
C. must be prepared on columnar paper.
D. None of these answer choices are correct.

Answer 1

The worksheet is prepared at the beginning of the period to ready the permanent accounts for the activity that will occur during the period. It is a tool used by accountants to adjust and summarize the accounts before preparing the financial statements.

Step-by-step explanation:

The correct answer is B. The worksheet is prepared at the beginning of the period to ready the permanent accounts for the activity that will occur during the period.

A worksheet is a tool used by accountants to adjust and summarize the accounts at the end of the accounting period before preparing the financial statements. It helps to ensure that the financial statements are accurate and complete.

The worksheet is not a replacement for the financial statements, nor does it have to be prepared on columnar paper. It is an internal tool used during the accounting process.