A Transaction Involving a Charge to a Non-Existent Customer Account

question 56

Multiple Choice

A transaction involving a charge to a non-existent customer account was entered into an accounts receivable and billing system that was batch processed.This error should be detected by the computer system and appear in:

• A)The sort run error printout
• B)The edit run error printout
• C)The customer statements printout
• D)The master file update run error printout
• E)Some error printout other than those mentioned above

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's profit or losses.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Fair Value Enterprise Method

A valuation approach that estimates the value of an entire enterprise based on the fair value of its assets and liabilities.

Equity Method

An accounting technique used by companies to record their investments in other companies, based on the equity or ownership stake in those companies.