An accounting system in which the reserve computation and reserve maintenance periods do not overlap is called?
A)the reserve maintenance period
B)a lagged reserve accounting system
C)a contemporaneous reserve accounting system
D)undershooting.
E)None of the above.

Question

Quizplus · Accepted Answer

A lagged reserve accounting system is one in which the reserve computation and reserve maintenance periods do not overlap. This means that the reserves are calculated based on past data, which can lead to more accurate and stable reserve levels. In contrast, a contemporaneous reserve accounting system calculates reserves based on current data and can be more volatile. Undershooting is not a term commonly used in accounting systems.

An Accounting System in Which the Reserve Computation and Reserve