Which of the Following Is a Limitation of Using Commercial

question 53

Multiple Choice

Which of the following is a limitation of using commercial databases to access foreign company financial statements?

• A)Data may be lost when a standard financial statement format is imposed on foreign statements.
• B)Errors may occur during data entry.
• C)Notes to the financial statements may not be included,or only partially included.
• D)All of the above are limitations.

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Definitions:

Net Method

The Net Method is an accounting procedure that records the purchase of goods or services after deducting any discounts for early payment.

Internal Control

The process implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Purchase Discounts

A reduction in the price of goods bought, usually for early payment or in bulk quantity.

Net Method

An accounting technique that reports invoice amounts and accounts payable after deducting any available discounts for early payment.