What Is a Performance and Accountability Report (PAR)? Describe Its

question 58

Essay

What is a Performance and Accountability Report (PAR)? Describe its purpose and contents.

Understand the function and recording of adjusting entries in the accounting cycle.

Comprehend the concept and application of accrual accounting versus cash basis accounting.

Describe the purpose of adjusted and unadjusted trial balances and their roles in preparing financial statements.

Differentiate between the various types of adjusting entries: prepaid expenses, unearned revenues, accrued revenues, and accrued expenses.

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Definitions:

Balance Sheet

A financial record showing the balance of assets, liabilities, and equity of shareholders of an enterprise on a specific date.

Fair Market Value

The price that a property would sell for on the open market, between a willing buyer and a willing seller.

Trade-In Allowance

The value credited to a customer when they exchange an older item towards the purchase of a new item, often used in automotive and electronics sales.

Intangible Assets

Non-physical assets having a value with an indefinite life span, such as patents, trademarks, and goodwill.