Which is not true about the financial process?
A) Revenue, purchasing, and production events are initially recorded in the financial process.
B) Transaction data that are captured in other processes are transferred to the financial process.
C) Some transactions are originally recorded in the financial process.
D) Some end-of-period adjustments are required in the financial process.

Question

Quizplus · Accepted Answer

The diagram shows that revenue, purchasing, and production events are initially captured in the sales, purchasing, and production subsystems respectively. They are then transferred to the financial process for recording in the general ledger.

Answer: D 
 The diagram shows that the financial process requires end-of-period adjustments for accruals, deferrals, and other adjustments necessary for the preparation of financial statements. These adjustments are necessary to ensure that financial statements accurately reflect the financial position and performance of the organization.

Which Is Not True About the Financial Process