The Principal Function of an Accounting System's Computerized Controls Is

question 31

Multiple Choice

The principal function of an accounting system's computerized controls is:

• A)Detecting computer frauds
• B)Preventing computer frauds
• C)Encouraging programmer honesty
• D)none of the above

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Balance Sheet

A business statement that consolidates the assets, debts, and shareholder equity of a company at a certain point.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained by the company for reinvestment or to pay off debt.