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Two Accounting Principles That Are Relied on in the Adjusting

question 187

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Two accounting principles that are relied on in the adjusting process are:


Definitions:

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, owning assets, and being taxed.

Dollar Terms

Refers to the value of transactions, prices, or economic indicators denominated in the U.S. dollar.

Investment

Disbursing funds with the prospect of accruing income or profits.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific period, a primary indicator of economic health.

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