The Drawback of the SPM Is ______

question 54

Multiple Choice

The drawback of the SPM is ______.

• A)it is difficult to use
• B)considers only operational measures
• C)nonfinancial measures are not factored into the model
• D)it requires 5 to 10 years of historical data

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Definitions:

Controlling Account

The account in the general ledger that summarizes or controls a subsidiary ledger. Example: The Accounts Payable account in the general ledger is the controlling account for the accounts payable subsidiary ledger. After postings are complete, it shows the total amount owed from purchases made on account.

General Ledger

A comprehensive record of all financial transactions made over the life of a company.

Vouchers Payable

Liabilities representing invoices that have been received but not yet paid.

Separation Of Duties

Separation of duties is a key control in internal systems, aimed at reducing the risk of fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction.