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Accounting Terms Dictionary

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Creating financial statements using data supplied by the client.

Since the accountant is using numbers supplied by the client, he has no idea if the numbers are correct. A client who wanted the bank to lend him money could write down “Income $40,000” when it was actually $20,000. The accountant would have no way of knowing the number was incorrect. Therefore the accountant does not sign the statements or offer any assurances on the reliability or validity of the work. These are unaudited financial statements.

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