Briefly List the Two Types of Legal Systems in Existence

question 32

Essay

Briefly list the two types of legal systems in existence today and discuss how they would affect the accounting standards of a nation.

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Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Financial Statements

Reports that summarize a company's financial performance and position, including balance sheets, income statements, and cash flow statements.

Accounting Cycle

Refers to the series of steps followed in the accounting process to collect, process, and report financial information, culminating in closing the books at the end of the accounting period.

Post-closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, showing account balances ready for the next period.