Which of the Following Procedures Would an Entity Most Likely

question 18

Multiple Choice

Which of the following procedures would an entity most likely include in its disaster recovery plan?

• A)Convert all data from external formats to an internal company format.
• B)Maintain a program to prevent illegal activity.
• C)Develop an auxiliary power supply to provide uninterrupted electricity.
• D)Store duplicate copies of files in a location away from the computer center.

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Definitions:

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account, represented on the right side of the ledger.

Closing Entry Process

The accounting procedure used at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue Accounts

Accounts that track the income earned from the sale of goods and services, or the increase in equity resulting from the operations of an organization.

Owner's Capital Account

An account on a company's balance sheet that represents the owner's invested capital plus retained earnings minus withdrawals.