The first activity in the general ledger system is to update the general ledger.Updates come from the various accounting subsystems as well as from the treasurer.How is general ledger updating accomplished by the various accounting subsystems?
A)Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours.
B)Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger.
C)The controller or treasurer must approve accounting subsystem journal entries before any updating may occur.
D)Nonroutine transactions are entered into the system by the treasurer's office.

Question

Quizplus · Accepted Answer

Accounting subsystems usually generate a large number of transactions, making updating the general ledger on an individual basis impractical. Summary journal entries that represent the results of all transactions for a certain time period, usually daily or weekly, are used to update the general ledger instead. Choice A is inefficient and impractical. Choice C is incorrect because journal entries are typically only approved if they go beyond certain thresholds, such as a materiality threshold. Choice D is incorrect because the treasurer's office normally only handles non-routine transactions, not routine transactions.

The First Activity in the General Ledger System Is to Update