Under the Accrual Basis, Some Accounts in the Ledger Require

question 154

Essay

Under the accrual basis, some accounts in the ledger require updating at the end of the period. Discuss the three main reasons for this updating and give an example of each.

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Definitions:

Board Of Governors

The Board of Governors is the leading body of the Federal Reserve System, overseeing the Federal Reserve Banks and helping to formulate monetary policy in the United States.

Federal Reserve System

The central banking system of the United States, responsible for regulating the country's monetary policy and banking institutions.

Deposits In Reserve

Money that commercial banks are required to keep in the form of vault cash or deposits with the central bank, as a regulation to ensure banks can meet depositor demands.

Money Supply

The total amount of currency and other liquid instruments in a country's economy as of a particular time.