The General Ledger System of an Organization Should Be Designed

question 54

Multiple Choice

The general ledger system of an organization should be designed to serve the information requirements of both internal and external users.This means that the system should support

• A)producing expansive regular periodic reports to cover all information needs.
• B)the real-time inquiry needs of all users.
• C)producing regular periodic reports and respond to real-time inquiry needs.
• D)access by investors and creditors of the organization to general ledger balances.

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Definitions:

Managerial Accounting

Managerial accounting is the practice of analyzing, interpreting, and communicating financial information to managers for the purpose of making informed business decisions.

Planning

The process of setting goals, defining strategies, and outlining tasks and schedules to achieve the desired outcomes.

Setting Goals

The process of identifying tangible objectives to aim for, often as benchmarks for personal or professional success.

Accepted Principles

Generally accepted accounting principles (GAAP) that serve as the framework and rules for financial reporting and accounting.