Strong General Controls Mitigate Which Type of Risks

question 13

Multiple Choice

Strong general controls mitigate which type of risks?

• A) Risk of system obsolescence
• B) Risk of system crash
• C) Risk of theft of information and data
• D) All of the above

---

Definitions:

Credit Balance

A balance in a financial account that indicates the amount of money owed to a creditor or the account holder; it is the opposite of a debit balance.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, preparing the books for the next period.

Temporary Accounts

Revenue, expense, and drawing accounts that are closed to the owner’s capital account at the end of the accounting period.

Post-Closing Trial Balance

A listing of all accounts and their balances after the closing entries are made, ensuring debits equal credits.