Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions: 27

Answer

Some companies use technology that allows them to do "virtual close" almost instantaneously any time during the year. Besides reducing the cost of closing, the virtual close provides companies with accurate data for decision making whenever they desire it.

Work Step by Step

Normally companies require seven to ten days to close, but with virtual close, ties work is done instantly, thereby saving a lot of time and money. Further, it was earlier not possible to close the accounts, to evaluate the status of the company during the financial year, however with virtual close, it is possible as and when required.
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