Explain the Four Steps of Reviewing a Test

question 15

Short Answer

Explain the four steps of reviewing a test.

---

Definitions:

Adjusting Entries

Account keeping entries made at the period's end in accounting to distribute financial inflows and outflows to the time slot in which they really took place.

Accounting Cycle

A series of steps performed during an accounting period to analyze, record, classify, summarize, and report financial information, culminating in the preparation of financial statements.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balance of each account after adjusting entries have been made for closing the period.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business, whichever is longer.