Which of the Following Statements Is False Concerning Computerized Accounting

question 13

Multiple Choice

Which of the following statements is false concerning computerized accounting systems?

• A) Safeguards exist to make sure that controls are working properly.
• B) There is no need for controls over human operators of computerized systems.
• C) Computerized accounting systems are not 100% reliable.
• D) Limits should be placed on who can access a computerized system.
• E) Many internal control procedures are automated.

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Definitions:

Rights Offering

A method companies use to raise capital, which gives existing shareholders the right to purchase additional shares at a discounted price before the public.

Ownership Position

Ownership position refers to the holding of equity in a company or property, granting the holder rights to profits, voting, and potentially influencing management decisions.

Subscription Price

The cost at which investors can buy shares during an offering before they are available to the general public.

Common Share

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and to receive dividends.