BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the accounts approach, you define a technical clearing account for integrated asset acquisitions, unlike the ledger approach
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In the ledger approach, you maintain additional depreciation areas to post the delta valuation of each accounting principle, unlike the accounts approach
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In the accounts approach, you assign a completely separate set of accounts for each accounting principle, unlike the ledger approach
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In the ledger approach, you assign a ledger group to every depreciation area, unlike the accounts approach
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Detailed explanation-1: -Accounting-principle-specific documents are generated for each valuation. In the case of the ledger approach, these documents are posted to separate ledgers. In the case of the accounts approach, these documents are posted to parallel account sets within the same ledger of General Ledger Accounting.
Detailed explanation-2: -To summarize, with the ledger approach, you post to the same accounts in different ledgers whereas, with the account approach, you post to different accounts in the same ledger.
Detailed explanation-3: -Accounting principles are used for both scenarios. Ledger (0L) is always used. If an account-based approach is used, then several accounting principles are assigned to the leading ledger. If a ledger-based approach is used then the ratio between ledger and accounting principle is 1: 1.
Detailed explanation-4: -Parallel Accounts-in which multiple accounting principles are assigned to the leading ledger. Parallel Ledgers-in which multiple ledgers are used, with an accounting principle applied to each ledger.