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:

Contribution

The act of providing a partial payment or service by a party among others towards a common goal or to make up for a joint liability.

Limited Partnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners who have limited liability to the extent of their investments and do not participate in the management of the business.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

Limited Status

A condition where certain rights or privileges are restricted or not fully granted compared to full status.