In the context of journal entries, the process of monitoring changes in the recording of disbursements is called:

• A. Accrual accounting
• B. Audit trail analysis
• C. Depreciation tracking
• D. Bank reconciliation

Answer: (B)

Verified step by step guidance

1. Understand the context of the problem: The question is asking about the process of monitoring changes in the recording of disbursements, which refers to tracking and verifying financial transactions.
2. Review the provided options: Accrual accounting, Audit trail analysis, Depreciation tracking, and Bank reconciliation. Each term has a specific meaning in financial accounting.
3. Clarify the concept of 'Audit trail analysis': This involves tracking the sequence of financial transactions, ensuring that all changes in the records are documented and can be traced back to their origin. It is a key process for monitoring disbursements.
4. Compare 'Audit trail analysis' with other options: Accrual accounting deals with recognizing revenue and expenses when they are incurred, not necessarily when cash is exchanged. Depreciation tracking focuses on allocating the cost of an asset over its useful life. Bank reconciliation involves comparing the company's records with the bank statement to ensure accuracy.
5. Conclude that 'Audit trail analysis' is the correct term for monitoring changes in the recording of disbursements, as it directly relates to tracking and verifying transaction records.