Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)As computerized accounting systems become more complex, there are usually fewer manual processes.
• B)With more automation in computerized accounting systems, responsibility for authorization gets moved to lower levels of employees.
• C)Approvals for each journal voucher are general authorizations instead of a specific authorization.
• D)None of the above are false.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Merchandise

Goods that are bought and sold in business transactions, often referred to in the context of retail or wholesale trading.

Merchandise Inventory

The total value of a company's products that are currently unsold, crucial for retail and wholesale businesses.

Operating Cycle

The average period of time required for a business to convert its investments in inventory back into cash through the sale of goods or services.