When Dealing with the Administration of the IT Function and the Segregation

question 24

Multiple Choice

When dealing with the administration of the IT function and the segregation of IT duties

• A) in large organizations, management should assign technology issues to outside consultants.
• B) programmers should investigate all security breaches.
• C) the board of directors should not get involved in IT decisions since it is a routine function handled by middle management.
• D) in complex environments, management may establish IT steering committees.

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Definitions:

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Cost of Trade Credit

The effective interest rate associated with taking discounts offered by suppliers for early payment or the cost of forgoing those discounts.

Net 30

A payment term indicating that full payment is due within 30 days of the invoice date.