Internal Controls Used Specifically in Accounting Applications to Control Inputs

question 74

Multiple Choice

Internal controls used specifically in accounting applications to control inputs, processing, and outputs are referred to as a(n) :

• A)Specific controls
• B)Application controls
• C)General controls
• D)IT controls

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Definitions:

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Accounting

An information system that provides reports to stakeholders about the economic activities and condition of a business.

Adjusting Process

The method of updating account balances at the end of an accounting period to reflect accurate financial positions.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a financial situation over a specified period.