“A worksheet is a permanent accounting record and its use is required in the accounting cycle.” Do you agree? Explain. Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet?

I do not agree with the statement that "a worksheet is a permanent accounting record but I agree that its use is required in the accounting cycle.”

A worksheet does not form a part of the permanent accounting records but only acts as a device used by accountants to achieve the following purposes in each accounting cycle:

A permanent accounting record forms part of the journal or the general ledger.

Formal financial statements must still be prepared despite the fact that all the data are in the statement columns because the worksheet is not a standardized format for preparing the financial statements for the consumption of users of financial statements.  Only the professionals request worksheets as part of their going work.

Thus, a worksheet is not a part of the journal or the ledger.  It is not a permanent accounting record.  Moreover, the column statements in the worksheet are not acceptable formats for presenting financial statements.

Learn more about accounting worksheets (computer-based and paper-based) here:

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