In the general ledger and financial reporting cycle:
A)Adjusting journal entries does not have to be authorised independently.
B)Reports must not contain irrelevant data.
C)Data should not be transferred amongst accounts.
D)Data need not be validated.

Question

Quizplus · Accepted Answer

Financial reports should only contain relevant data that is necessary for understanding the financial health of the organization. Including irrelevant data could lead to confusion or misinterpretation of the financial information.

The other options are incorrect:
A) Adjusting entries typically require authorisation to ensure accuracy and completeness of the financial statements.
C) Transferring data between accounts is a necessary part of the general ledger process.
D) Data validation helps to ensure the completeness and accuracy of the financial information.

In the General Ledger and Financial Reporting Cycle