Before journalizing and posting adjustments similar to those just described, it is necessary to determine and assemble the relevant data. For example, it is necessary to determine the cost of supplies on hand and the salaries accrued at the end of the period. Such details, as well as other compilations of data, preliminary drafts of the profit and loss account and balance sheet and other analyses prepared by professional accountants are characterized generally as working papers.
A particular type of working paper frequently used by accountant for the purpose of the preparation of the profit and loss account and balance sheet has come to be called a work sheet. Its use reduces the possibility of overlooking the need for an adjustment, it provides a convenient means of verifying arithmetical accuracy, and it provides for the arrangement of data in a logical form.The Twelve Sacred Traditions of Magnificent Mothers-in-Law
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