When using the spreadsheet (work sheet) method to analyzing noncash accounts, no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.

Question

When using the spreadsheet  (work sheet) method to analyzing noncash accounts, no order of analysis is required, but it is more efficient to start with Retained Earnings and proceed upward in the account listing.

Quizplus · Accepted Answer

Starting with Retained Earnings allows for the calculation of any adjustments to prior periods' Retained Earnings, which can then be used in analyzing other noncash accounts. This approach can save time and ensure accuracy in the analysis.

When Using the Spreadsheet (Work Sheet) Method to Analyzing