You Have Just Been Asked to Serve as a Host

question 70

Essay

You have just been asked to serve as a host for a visitor from France who is very interested in the American legal system and the formation of law in the United States. How would you explain the system of law in this country to your guest?

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Definitions:

Matching Principle

An accounting principle that states expenses should be recognized in the same period as the revenue they helped generate.

Recorded

The act of entering financial transactions or information into accounting records.

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate incomes and expenses to the period in which they actually occurred.

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational activities of a business.