GFEBS L412E Journal Entries Processing and Approval Questions and Answers | Latest Version | 2024/2025 | Already Passed

Processing and Approval Questions and Answers | Latest Version | 2024/2025 | Already Passed What is the purpose of processing journal entries? The purpose is to record financial transactions accurately in the accounting system. What must be ensured before a journal entry is posted? It must be verified for accuracy and compliance with accounting standards. Who is typically responsible for approving journal entries? A financial manager or a designated authority approves journal entries to ensure proper oversight. What happens if a journal entry contains an error? The entry must be corrected or reversed and re-entered with the accurate information. Why is it important to have approval for journal entries? 2 Approval ensures that the entries are legitimate, accurate, and compliant with financial policies. What information is typically included in a journal entry? A journal entry usually includes the date, account numbers, debit and credit amounts, and a description of the transaction. What is a common reason for reversing a journal entry? A common reason is if an entry was made incorrectly or needs adjustment. What is the impact of unapproved journal entries? Unapproved entries may lead to inaccurate financial reporting and potential compliance issues. What kind of transactions might require journal entries? Transactions such as accruals, adjustments, corrections, and reclassifications may require journal entries. How is the approval process for journal entries typically documented? 3 Approval is often documented through signatures, digital approvals, or automated system workflows. Why is the timing of journal entries important?