Many Accounting Systems Require _____ Reports and Structural Changes to Keep

question 36

Short Answer

Many accounting systems require _____ reports and structural changes to keep up with changes to the company;thus,accountants need to be familiar with database management.

Explain the purpose and process of reversing entries.

Understand the significance of the post-closure trial balance and the difference between permanent and temporary accounts.

Describe the steps in the accounting cycle, including the preparation of financial statements in a specific order.

Comprehend the utility and preparation process of work sheets and closing entries.

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law passed in 2002 that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, aiming to protect investors from fraudulent financial reporting.

Board of Directors

A group of elected individuals who represent shareholders and oversee the activities and strategic direction of a company.

Floor Brokers

Professionals who execute trades on the exchange floor on behalf of their clients, matching buy and sell orders.

Maturity Matching

Maturity matching is a financial strategy that involves aligning the duration of assets and liabilities to manage liquidity and risk.