An Adjusted Tabular Summary

question 96

Multiple Choice

An adjusted tabular summary:

• A)is prepared after the financial statements are completed.
• B)proves the equality of the basic accounting equation after all adjustments have been made.
• C)is a required financial statement under generally accepted accounting principles.
• D)cannot be used to prepare financial statements.

---

Definitions:

Liability

Financial obligations or debts that an entity owes to another party, which need to be settled over time through the transfer of economic benefits including money, goods, or services.

Adjusting Entry

An adjusting entry, in accounting, is utilized to update the records for expenses and revenues that have accrued but not yet been recorded in the general ledger by the end of an accounting period.

Accumulated Depreciation

The cumulative amount of depreciation expense recorded for fixed assets over their useful lives, reflecting the decline in the assets' value from wear and tear or obsolescence.

Depreciation Expense

The allocated amount of an asset's cost that is expensed during a given period, reflecting the asset's consumption or loss of value.