Define Top-Down Planning and Bottom-Up Planning

question 81

Essay

Define top-down planning and bottom-up planning.

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Definitions:

Adjusting Entries

Financial records generated at the end of a bookkeeping period to allocate receipts and disbursements to the time in which they actually occurred.

Accrued Expenses

Expenses that have been incurred by a company but not yet paid or recorded in financial statements.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.

Internal Transactions

Transactions that occur within a company, affecting its internal accounts without involving an external party.