Identify the Most Correct Statement with Regard to How the Various

question 9

Multiple Choice

Identify the most correct statement with regard to how the various accounting subsystems update the general ledger.

• A)Individual journal entries for each accounting subsystem transaction update the general ledger every 24 hours.
• B)Summary journal entries that represent the results of all transactions for a certain time period are used to update the general ledger.
• C)The controller or treasurer must approve accounting subsystem journal entries before any updating may occur.
• D)Nonroutine transactions are entered into the system by the treasurer's office.

---

Definitions:

Confirmation Bias

The propensity to explore, interpret, select, and revive information in ways that strengthen one's existing convictions or hypotheses.

Fundamental Attribution Error

The tendency to overestimate the influence of personal characteristics and underestimate the influence of situational factors in explaining others' behavior.

Illusory Correlation

A cognitive bias wherein people falsely perceive an association between two events or situations.

Heuristic Overbias

The tendency to over-rely on heuristic approaches when making decisions, often at the expense of more accurate or rational methods.