Auditors Often Make Use of Computer Programs That Perform Routine

question 68

Multiple Choice

Auditors often make use of computer programs that perform routine processing functions such as sorting and merging.These programs are made available by IT companies and others and are specifically referred to as:

• A)user programs.
• B)utility programs.
• C)supervisory programs.
• D)compiler programs.

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Definitions:

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.

Days' Sales in Inventory

A financial ratio that shows the average number of days a company holds its inventory before selling it.

Average Collection Period

The typical timeframe a firm needs to gather payments from sales made on credit, showcasing how efficient its credit and collection procedures are.