Controls over the period ending reporting process include:
A)procedures to enter transaction totals into the general ledger
B)procedures used to estimate recurring and nonrecurring adjustments to the annual and quarterly financial statements
C)procedures related to the selection and application of accounting policies
D)procedures used to initiate,authorize,record,and process journal entries in the job cost ledger
E)procedures for recording annual and quarterly financial statements and related disclosures
F)both A and B
G)both A and C
H)both A and D

Question

Quizplus · Accepted Answer

Controls over the period ending reporting process include procedures to enter transaction totals into the general ledger (A), but also procedures related to the selection and application of accounting policies (C), such as ensuring compliance with applicable accounting standards and consistency in accounting treatments. Choice B is not entirely accurate, as estimating adjustments to financial statements is typically done during interim period reporting, rather than at year or quarter-end. Choice D is not relevant, as it pertains to job cost accounting, which is not part of the period-end reporting process. Choice E is not a control measure, but rather a result of the reporting process. Therefore, the best choice is G (A and C only).

Controls Over the Period Ending Reporting Process Include