Recording a journal entry is a first and foremost important step when it comes to recording transactions. If journal entry is not correctly recorded all consequent effects of that transaction would be incorrect and all togeather the overall financial data might be incorrect if any major transaction is incorrectly recorded. Management does decision making on the basis of financial data available and if such data is incorrect and misleading, the management might tend to make a wrong decision and therefore management should be concerened about efficiency of a firm's procedures for journalizing and posting transactions.
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