The Maintenance of Backup Copies of a Company's Important Transaction

question 22

Multiple Choice

The maintenance of backup copies of a company's important transaction and master files is an example of a:

• A)Preventive control procedure
• B)Detective control procedure
• C)Corrective control procedure
• D)Management-by-exception control procedure

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Definitions:

Buyer Acquires

The process where a buyer takes possession or ownership of goods or property from a seller.

Quick Assets

Liquid assets that can be quickly converted into cash without significantly affecting their value, such as marketable securities and accounts receivable.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity by comparing its most liquid assets (excluding inventory) against its short-term liabilities.

Just-In-Time Inventory System

A supply chain management strategy aimed at reducing inventory costs by receiving goods only as they are needed in the production process.