An Accountant Who Recently Examined 200 Accounts from a Company's

question 76

True/False

An accountant who recently examined 200 accounts from a company's total of 4,000 accounts in an effort to estimate the percentage of all accounts that have incorrect journal entries is using descriptive statistical analysis to reach the conclusion.

---

Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Accrued Liabilities

Liabilities that have been incurred but not yet paid or recorded at the end of the accounting period.

Accrued Receivables

Amounts owed to a business for goods or services delivered but not yet paid by the end of an accounting period.

Income Summary Account

An account used in closing to collect revenues and expenses, the balance of which shows the net income or loss for the period.