Which of the Following Controls Would Most Likely Assure That

question 38

Multiple Choice

Which of the following controls would most likely assure that a company can reconstruct its financial records?

• A)Security controls such as firewalls.
• B)Backup data are tested and stored safely.
• C)Personnel understand the data very well.
• D)Paper records.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life.

Depreciation Tax Shield

The reduction in taxes due to depreciation’s reducing taxable income.

Net Operating Cash Flows

The amount of cash that a company generates from its normal business operations after subtracting operating expenses.

Future Value

The value of an investment at a specified date in the future, accounting for specified interest rates or returns.