Limitations of the general ledger approach include the following:
A) combining of financial and non-financial information
B) purging of detailed event level data
C) use of a chart of accounts
D) inability to conform to GAAP

Question

Quizplus · Accepted Answer

The purging of detailed event level data is a limitation of the general ledger approach as it prevents the ability to analyze specific transactions and can limit the accuracy of financial reporting. The other options (A, C, D) are not limitations of the general ledger approach.

Limitations of the General Ledger Approach Include the Following