Documentation of the Accounting System Allows

question 95

Multiple Choice

Documentation of the accounting system allows:

• A)The accountant to analyze and understand the procedures and business process and the systems that capture and record the accounting data.
• B)The non-accountant to create a picture or chart of what should happen within the accounting system.
• C)The investor to see inside the accounting system so that he / she can better understand the financial statements.
• D)The accountant to determine which financial statements will be necessary to properly report the results of operations.

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Definitions:

Job Enlargement

The grouping of a variety of tasks about the same skill level; horizontal enlargement.

Source Inspection

The practice of inspecting goods or materials at the supplier's site before they are shipped to the purchaser, to ensure they meet specified quality standards.

Inspection Goal

The predefined objectives and criteria set for quality control inspections to ensure that products meet required standards and specifications.

Incremental Improvement

A continuous approach to enhancing products, services, or processes through small, actionable steps rather than major overhauls, aiming for consistent progress over time.