Perfect Reliability Implies Perfect Validity

question 71

True/False

Perfect reliability implies perfect validity.

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Definitions:

Adjustments

Modifications made to accounting entries to correct errors or allocate revenues and expenses to the appropriate accounting period.

Match Expenses

The accounting principle that requires expenses to be recorded in the same accounting period as the revenues that are earned as a result of those expenses.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet, which is one of the three principal financial statements; these accounts include assets, liabilities, and shareholders' equity.