The Financial Reports That Meet the Information Needs of a Range

question 16

Short Answer

The financial reports that meet the information needs of a range of users unable to demand accounting information are called ____________ purpose financial statements.

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Definitions:

Adjusting Entry

An accounting entry made at the end of a period to assign income and expenses to the period in which they actually occurred.

Equipment

Tangible assets used in operations, such as machinery or office hardware, that have a useful life longer than one reporting period.

Subscription

An agreement to purchase a product or service on a recurring basis or to receive regular deliveries or access to content.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but are not yet recorded.