Explain the Terms Validity and Reliability with Reference to the Selection

question 51

Essay

Explain the terms validity and reliability with reference to the selection procedure.

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Definitions:

Adjusted Trial Balances

An internal document that lists all accounts and their balances after adjustments are made for errors, accruals, and deferrals, used for preparing financial statements.

Adjusting Entries

Financial records made upon the completion of an accounting cycle to allocate gains and deductions to the actual period in which they occurred.

Insurance Expired

Indicates the end of an insurance policy's coverage period.

Chart of Accounts

An organized list of all the accounts in a company’s general ledger, used for classifying and summarizing financial transactions.