The general ledger and financial reporting cycle initially extracts existing transactional data from:
A)Previous financial reports.
B)Operational reports.
C)Online banking facilities.
D)Subsidiary ledgers.

Question

Quizplus · Accepted Answer

The general ledger and financial reporting cycle uses the data extracted from subsidiary ledgers, which are the sub-sets of the general ledger that contain detailed information for specific accounts such as accounts receivable, accounts payable, inventory, etc. The transactional data from these subsidiary ledgers is summarized and transferred to the general ledger, which is then used to prepare financial statements. Previous financial reports may be used as a reference, but they do not provide the initial data for the cycle. Operational reports and online banking facilities may provide useful information, but they do not directly contribute to the general ledger and financial reporting cycle.

The General Ledger and Financial Reporting Cycle Initially Extracts Existing