Processing Methods

question 138

Multiple Choice

Processing methods

• A) are the policies and procedures that protect assets from misuse
• B) must be computerized
• C) are the means by which the accounting system collects, summarizes, and reports accounting information
• D) ensure that business laws and regulations are followed

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Definitions:

Parol

Oral or verbal evidence, not recorded in writing, used to explain the terms of a contract.

Both Parties

Referring to the two entities or individuals involved in an agreement, contract, or negotiation.

Fraud in the Inducement

A deceitful practice where one party intentionally misrepresents material facts, inducing another to enter into a contract.

UCC Statute of Frauds

A legal requirement under the Uniform Commercial Code that certain contracts must be in writing to be enforceable.