How is an audit trail used in the general ledger and reporting system?
What will be an ideal response?
An audit trail shows the path of a transaction through the accounting system. It can provide information needed to trace any changes made to the general ledger by tracing either to or from an original source document to the general ledger. It helps in tracing all changes in general ledger accounts from beginning balances to ending balances as well as any adjustments made to the accounts.
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Which statement is true with regard to insurance company investments?
I. Investment income helps to reduce the cost of insurance. II. Pooled premiums of insurance companies are an important source of funds in the economy. (a) I only (b) II onl (c) both I and II (d) neither I nor II
Under certain conditions, a single home owner may exempt up to how much in gains from the sale of his or her personal residence?
a. $500,000 b. $300,000 c. $250,000 d. $125,000