Which Reports Provide an Internal Report That Highlights Situations Occurring

question 18

Multiple Choice

Which reports provide an internal report that highlights situations occurring outside of the normal operating range for a condition or standard?

• A) Internal reports
• B) Detailed internal reports
• C) Summary internal reports
• D) Exception reports

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Definitions:

Adjustment

An adjustment in accounting refers to entries made in journal accounts that correct errors or account for expenditures that have not been recorded through the usual processes.

Reversing Entries

Journal entries typically made at the beginning of an accounting period to negate certain adjusting entries made in the previous period for the sake of simplicity in accounting.

Accrue Salary Expense

The process of recognizing salaries incurred by employees during a period but not yet paid by the company.

Salaries Payment

The process of distributing money to employees as compensation for their work.