Asked by ANGELITA BROOKS on Jun 12, 2024
Verified
A backlog in recording transactions is an example of a warning sign from the accounting system.
Recording Transactions
The systematic process of documenting financial transactions in the accounting records of a business.
Accounting System
The methods and procedures used by a business to collect, classify, summarize, and report financial data for use by management and external users.
- Understand the goals and key elements of internal control frameworks.
Verified Answer
PM
Pavel MakarevichJun 15, 2024
Final Answer :
True
Explanation :
A backlog in recording transactions can lead to inaccurate financial statements, which is a warning sign that something may be wrong with the accounting system. It could also indicate that the accounting staff is overworked, understaffed, or lacking the necessary training to complete the task efficiently.
Learning Objectives
- Understand the goals and key elements of internal control frameworks.