Which of the Following Is Not Considered a Cause for Information

question 100

Multiple Choice

Which of the following is not considered a cause for information risk?

• A)Management's geographic location is far from the source of the information needed to make effective decisions.
• B)The information is collected and prepared by persons who use the information for very different purposes.
• C)The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers.
• D)The information has been tested by internal auditors and a CPA firm.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's receivables that may not be collectible.

Bad Debts Expense

This is an expense reported on the income statement, reflecting the cost of credit sales that a company does not expect to collect.

Lesbians

Women who are emotionally, romantically, or sexually attracted to other women.

Gay Men

Male individuals who are emotionally, romantically, or sexually attracted to other males.