Limitations of the General Ledger Approach Include the Following

question 23

Multiple Choice

Limitations of the general ledger approach include the following:

• A) combining of financial and non-financial information
• B) purging of detailed event level data
• C) use of a chart of accounts
• D) inability to conform to GAAP

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Definitions:

International Sale of Goods

Pertains to a commercial transaction that crosses national boundaries, governed by specific legal frameworks like the United Nations Convention on Contracts for the International Sale of Goods (CISG).

Goods But Not Services

A classification that refers to tangible commodities or physical items that are bought, sold, or traded, excluding intangible offerings such as services.

Trade Growth

An increase in the exchange of goods and services between countries, often measured by the rise in exports and imports.

FOB

Free On Board, a term in international trade that indicates whether the seller or buyer is responsible for goods damaged or destroyed during shipping.