Reliability Is the Assumption That,ordinarily,an Entity Persists Indefinitely

question 73

True/False

Reliability is the assumption that,ordinarily,an entity persists indefinitely.

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Definitions:

Depreciation Expense

An accounting method for allocating the cost of a tangible asset over its useful life to reflect the asset’s consumption, wear and tear, or obsolescence.

Adjusted Trial Balance

An inventory of every account along with its adjusted balance, utilized in the drafting of financial statements.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts before the financial statements are prepared.

Net Income

The residual earnings of a company after all costs including expenses and taxes are taken out from the total revenue.