At the end of an accounting period, financial statements need to be adjusted for the following reasons:

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At the end of an accounting period, financial statements need to be adjusted for the following reasons:

a. The accrual basis of accounting is a requirement of GAAP

b. The cash basis of accounting is not an acceptable method for use in financial reporting

c. The timeliness principle, the revenue recognition principle and the matching principle

d. All of the above.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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