Which of the Following Is Not a Major Difference Between

question 112

Multiple Choice

Which of the following is not a major difference between a manual processing environment and a computerized processing environment?

• A) A computerized processing environment requires data to be converted into electronic format, which introduces the possibility of input errors.
• B) A computerized processing environment has an increased level of human involvement.
• C) Random errors are more likely in a manual processing environment than a computerized processing environment.
• D) A hard copy "audit trail" is less likely to exist in a computerized processing environment than a manual processing environment.

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Definitions:

Financial Statement Data

Refers to quantitative information extracted from a company's financial statements, used to assess its financial health.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends or changes.

Base Period

An initial time period used as a reference point to compare with subsequent periods for analytical purposes.

Vertical Analysis

A method of financial statement analysis where each entry for a given period is represented as a proportion of a specific base figure.