Palmer company, inc. is at the end of its annual accounting period. the accountant has journalized and posted all external transactions and all adjusting entries, had prepared an adjusted trial balance, and completed the financial statements. the next step in the accounting cycle is

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Business

Heidi Coleman

20 June, 19:42

Palmer company, inc. is at the end of its annual accounting period. the accountant has journalized and posted all external transactions and all adjusting entries, had prepared an adjusted trial balance, and completed the financial statements. the next step in the accounting cycle is

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Yaretzi Sutton · Answer 1

the next step in the accounting cycle is Temporary

After a company completed all the financial statements, that company is required to clear out all of the accounts so they could be used on next period of accounting. To write the accounts off, they need to create some sort of temporary account so the transaction could be balanced in both credit and debit sides