Examlex
Which of the following describes the distribution of sodium and potassium between cells and body fluids?
Adjustment
Modifications made to account balances in order to correct financial statements or to allocate transactions correctly.
Accrual Accounting
An accounting method that recognizes revenue and expenses when they are incurred, not necessarily when cash is exchanged, enhancing the accuracy of financial statements.
Financial Statements
Formal records of the financial activities and position of a business, organization, or person, including balance sheets, income statements, and cash flow statements.
Adjusting Entries
Journal entries made in accounting to update the accounts and bring them to their correct balances before the preparation of financial statements.
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