CPY Corporation Replaces One Third of Its Computers Every Year;

question 13

Multiple Choice

CPY Corporation replaces one third of its computers every year; SLP Corporation replaces its computers when employees submit a request, but no more frequently than once every four years.Which of the following statements is most true?

• A)CPY's replacement policy does a better job safeguarding assets.
• B)SLP's replacement policy does a better job safeguarding assets.
• C)Neither replacement schedule helps achieve the internal control purpose of safeguarding assets, but replacing a computer may help promote operating efficiency.
• D)Neither replacement schedule helps achieve the internal control purpose of safeguarding assets because information is not an asset reported on the balance sheet.

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Definitions:

Recall

The mental process of retrieving information from past experience or learning that is currently not in conscious awareness.

Attending Church

The act of participating in religious services, particularly in a Christian context.

Implicit

Referring to knowledge, attitudes, or feelings that influence an individual's behavior unconsciously, without their aware acknowledgment.

Moderately Positive

Refers to a relationship or correlation that is positive but not strongly so.