Some Accounts Do Not Need to Be Adjusted at the End

question 33

True/False

Some accounts do not need to be adjusted at the end of the period,since the day-to-day transactions provide all the data for these accounts.

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Definitions:

Fiat Money

Currency that a government has declared to be legal tender, despite it not having intrinsic value or being backed by physical reserves such as gold or silver.

T-Account

A graphical representation of a general ledger account that highlights the debit and credit sides.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank or other governing bodies.