Adjusting Entries That Reflect Events That Have Already Occurred but for Which

question 65

Multiple Choice

Adjusting entries that reflect events that have already occurred but for which no cash flow has taken place and not previously entered into the accounts are called

• A)accruals.
• B)deferrals.
• C)revaluations.
• D)corrections.

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Definitions:

External Users

Individuals or entities outside of a company who have an interest in the financial information of that company, such as investors, creditors, and regulatory agencies.

Financial Accounting

The field of accounting that focuses on preparing financial statements for external users, such as investors, creditors, and regulatory agencies.

External Users

Individuals or entities outside a company, such as investors, creditors, regulators, and customers, who use its financial information for making decisions.

External Auditing

The examination of financial records and statements by an independent third party, to ensure accuracy and adherence to accounting standards.