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What Is An Adjusting Period And It’s Implications? |
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Answer» Typically, the last DAY of the fiscal year is used to perform adjusting and closing journals entries. This period is referred to as Adjusting Period. Choosing WHETHER to include an adjusting period or not in a calendar is a very important decision. There can be unlimited NUMBER of adjusting periods. Once the accounting calendar is used, changes to its STRUCTURE to remove or ADD an adjusting period cannot be done. Typically, the last day of the fiscal year is used to perform adjusting and closing journals entries. This period is referred to as Adjusting Period. Choosing whether to include an adjusting period or not in a calendar is a very important decision. There can be unlimited number of adjusting periods. Once the accounting calendar is used, changes to its structure to remove or add an adjusting period cannot be done. |
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