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:

Return On Equity

A measure of a corporation's profitability that calculates how much profit a company generates with the money shareholders have invested.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory over a period.

Operating Lease

An operating lease is a contract that allows for the use of an asset but does not transfer ownership rights of the asset to the lessee.

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, as it transfers substantially all risks and rewards of ownership.