Which of the following statements about particular data files is correct?
A) Transaction files correspond to paper ledgers in paper-based accounting systems.
B) Master files correspond to the paper journals in paper-based accounting systems.
C) Transaction files are a hybrid of master files and open files.
D) The general ledger master file stores the account balances reported on the financial statements.

Question

Quizplus · Accepted Answer

The general ledger master file is where the account balances reported on financial statements are stored. Option A is incorrect because transaction files are electronic records of financial transactions, not paper ledgers. Option B is incorrect because master files contain data about specific entities, such as customers or vendors, while journals record all transactions in chronological order. Option C is incorrect because transaction files are not a hybrid of master and open files.

Which of the Following Statements About Particular Data Files Is