Cheryl Liao is an accountant at Folding Squid Technologies.While making an adjusting entry to the general ledger,she received the following error message,"The account number referenced in your journal entry does not exist.Do you want to create a new account?" This message was the result of a
A) validity check.
B) closed loop verification.
C) zero-balance check.
D) completeness test.

Question

Quizplus · Accepted Answer

The error message received by Cheryl Liao indicates that a validity check has been performed which has discovered that the account number mentioned in her journal entry does not exist in the general ledger. The system is offering to create a new account because it cannot find an existing one to link the transaction to.

Cheryl Liao Is an Accountant at Folding Squid Technologies