Which of the following accounting procedures requires the greatest knowledge of generally accepted accounting principles?

Question

Quizplus · Accepted Answer

Journalizing business transactions involves not only the recording of the transaction, but also the proper classification and recognition of the financial impact on the company's financial statements. This requires a deep understanding of the generally accepted accounting principles (GAAP) and their application to various types of transactions. Posting journal entries to ledger accounts and preparing a trial balance also require knowledge of GAAP, but to a lesser extent than journalizing transactions. Locating errors in a trial balance requires analytical skills and knowledge of accounting procedures, but not necessarily a deep knowledge of GAAP.

Which of the Following Accounting Procedures Requires the Greatest Knowledge