In Devising Plans to Protect Vital Records During an Emergency

question 295

Multiple Choice

In devising plans to protect vital records during an emergency. a prime decision to make would be the identification of vital records. Whether such records are vital depends to a large extent on the type of business conducted. However, as a general rule, all of the following would be considered vital to any corporate organization except:

• A) The incorporation certification
• B) Personal identification fingerprints of employees
• C) The by-laws of the corporation
• D) The stock record books
• E) Board of directors' minutes

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Definitions:

Reporting Period

The specific timeframe for which financial statements are prepared, showing the financial position and performance of a company.

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Post-closing Trial Balance

A list of all balances in a company’s ledger accounts after the closing entries are made, serving as a check to ensure debits and credits are balanced at the end of an accounting period.

Operating Cycle

The time it takes for a company to purchase inventory, sell products, and collect cash from customers.