Transactions are summarized in:
A) The notes for the financial statements.
B) The independent auditor's opinion letter.
C) The entity's accounts.
D)None of the above.

Question

Quizplus · Accepted Answer

Transactions are summarized in the entity's accounts, such as the general ledger or sub-ledgers. The notes for the financial statements provide additional information and details regarding the transactions and balances in the accounts, while the independent auditor's opinion letter provides the auditor's assessment of the fairness and accuracy of the financial statements as a whole. However, neither of these options directly summarize the transactions themselves.

Transactions Are Summarized In