What Is the Most Important Way to Reduce an Organization's

question 12

Multiple Choice

What is the most important way to reduce an organization's risk due to loss or litigation?

• A) audit trails
• B) maintenance of electronic records
• C) proper documentation
• D) quality reviews

---

Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Temporary Accounts

Accounts used to record transactions during an accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

The balance sheet accounts that carry their ending balances into the next accounting period.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.