Running head: ACCOUNTING1AccountingInstitution AffiliationDateACCOUNTING2Areas in the closing process that is easy to make mistakesWhen any company or organization comes to the end of their financial year, they usuallyclose all financial books so they may identify the financial performance of the organization. Inthis closing process, there are some areas where it is easy to make mistakes. One of the areas thatmost accountants make mistakes in the closing process is on temporary accounts. They usuallytend to forget that temporary accounts are also nominal accounts and in the closing process allnominal accounts need to be closed so that the net income of an organization is calculated.Hence, this mistakes usually tend to affect the presentations of financial statements of companiessince they give false results.Reasons why accountants make mistakesWhat usually makes them confusing is in the income summary. One factor thatcontributes to mistakes being done is incorrect balances and posing of entries. For instance,expense balances are required to have debit balances and revenues need to have credit balances.However, sometimes it tends to become confusing for acc ...
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