A limitation of the general ledger approach is that financial and non-financial information is combined and business event source data is retained.

Question

Quizplus · Accepted Answer

The statement is true. In a general ledger approach, financial and non-financial information is recorded in the same system, and the source data for business events is often not retained or easily accessible. This can limit the ability to analyze and understand the underlying causes and implications of financial transactions.

A Limitation of the General Ledger Approach Is That Financial