If a Control Total Were to Be Computed on Each

question 107

Multiple Choice

If a control total were to be computed on each of the following data items, which would best be identified as a hash total for a payroll IT application?

• A) gross wages earned
• B) employee numbers
• C) total hours worked
• D) total debit amounts and total credit amounts

---

Definitions:

Bill And Hold Basis

An arrangement where a seller bills a customer for products but holds onto the inventory until it is actually needed or requested by the customer.

Sales Agreement

A detailed contract which outlines the terms of sale of goods or services between two parties.

Earnings Management

The practice of using accounting techniques to produce financial reports that present an overly positive view of a company's business activities and financial position.

Manipulate Earnings

The act of altering financial statements through aggressive accounting practices or outright fraud to present a more favorable view of a company's finances.