The accounting cycle comprises ten steps.In which step would you expect to find a difference between view-driven and event-driven AIS?
A)Analyze transactions.
B)Record adjusting entries.
C)Both analyze transactions and record adjusting entries.
D)Neither analyze transactions nor record adjusting entries.

Question

Quizplus · Accepted Answer

Both analyzing transactions and recording adjusting entries would likely reveal a difference between view-driven and event-driven AIS. Analyzing transactions involves examining the inputs and processes of the AIS to ensure they accurately reflect the economic events of the business. This would reveal any differences in how the two systems approach identifying and recording events. Recording adjusting entries involves making journal entries to adjust account balances at the end of an accounting period, based on accruals, deferrals, and estimates. This step may also differ between view-driven and event-driven AIS depending on how each system captures and processes this information.

The Accounting Cycle Comprises Ten Steps