Examlex
Which of the following statements is true?
Accrued Assets
Assets that are recognized on the balance sheet before they have been received or realized, often relating to income not yet received.
Reversing Entries
Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period, simplifying the record of new transactions.
Adjusting Entries
Journal entries made at the end of an accounting period to update account balances before producing financial statements, necessary for the accrual basis of accounting.
GAAP
Generally Accepted Accounting Principles; a collection of standardized guidelines and practices for financial accounting.
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