Which of the Following Is a Disadvantage of Using the General

question 3

Multiple Choice

Which of the following is a disadvantage of using the general journal for recording transactions?

• A)Using the general journal provides no grouping of transactions by type.
• B)Using the general journal lessens the risk of omission of entries.
• C)Using the general journal provides more details on each transaction.
• D)Using the general journal makes fraud easier to discover.

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Definitions:

Cost of Goods Sold

The immediate expenses directly related to the manufacture of products sold by a business, encompassing costs for materials, labor, and overhead.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, side-by-side, to facilitate comparison.

Direct Method

An accounting approach where costs are directly traced to objects, such as products or services, without using cost drivers or allocation bases.

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including the cost of the materials and labor directly used to create the good.