The Final Activity in the General Ledger and Reporting System

question 77

Multiple Choice

The final activity in the general ledger and reporting system is the production of various managerial reports.The report that shows planned cash inflows and outflows for each project is the

• A)journal voucher list.
• B)statement of cash flows.
• C)operating budget.
• D)capital expenditures budget.

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Definitions:

Correcting Entries

Journal entries made in accounting to correct previously made errors or adjustments in the financial statements.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a collection of commonly followed accounting standards and procedures for financial reporting.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when transactions occur.