From a data systems design perspective in accounting, how many principal types of general ledger entries are commonly recognized for system handling and controls?

Introduction / Context:
General ledger (GL) systems classify journal entries to streamline controls, workflows, and reporting. While organizations may add sub-categories, systems design typically recognizes a concise set that dictates approval paths and posting logic. This question asks for that commonly referenced count from a systems viewpoint.

Given Data / Assumptions:

• A GL entry records debits and credits that impact accounts.
• Design emphasizes consistent processing and audit trails.
• Common categories include regular/original, adjusting, and closing entries.

Concept / Approach:

Systems frequently group entries as: (1) original/regular (day-to-day operational postings), (2) adjusting (accruals/deferrals, estimates, corrections), and (3) closing (period-end transfers to retained earnings). This triad aligns with controls for period cut-off, segregation of duties, and financial statement preparation.

Step-by-Step Solution:

Verification / Alternative check:

Accounting systems and textbooks commonly feature original/adjusting/closing as core types; others (opening, reversing) are often treated as sub-types or specific timing mechanics rather than separate principal types.

Why Other Options Are Wrong:

One: Overly simplistic; does not reflect period-end processing realities.

Four or six: Some organizations enumerate sub-types, but the common systems design view is a triad for core workflows.

None: Incorrect; a recognized categorization exists.

Common Pitfalls:

Confusing detailed sub-types (e.g., reversing entries) with principal categories used for controls and reporting.

Final Answer:

three