The Accuracy and Completeness of the General Ledger Update Process

question 61

Multiple Choice

The accuracy and completeness of the general ledger update process can be tested y comparing the accounts receivable balance before the update, the total debits and credits to the accounts receivable account in the sales transaction file, and the accounts receivable balance after the update. What does this process use?

• A) Check digit analysis
• B) Control total analysis
• C) Validity analysis
• D) Hash total analysis

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Definitions:

Bonds Payable

A long-term financial liability where the issuer is obligated to pay back the principal along with interest to the bondholders at a future date.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company’s financial health.

Periodic Cash Interest

This represents the regular interest payments that a borrower is required to make on a debt over a specified period.

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a variable or fixed interest rate.