Companies would be least likely to use a worksheet to facilitate the adjustment process?

Question

Large company with numerous accounts

Small company with numerous accounts

All companies, since worksheets are required under generally accepted accounting principles

Small company with few accounts

Answer 1

The last answer is correct.

Worksheets are not required under GAAP. Companies with numerous accounts are likely to have a significant number of adjusting entries, and the worksheet facilitates this process. Small companies with few accounts will have a correspondingly low number of adjusting entries to be made, so the worksheet may be even unnecessary.