A Control That Involves Reprocessing Transactions That Are Rejected During

question 80

Multiple Choice

A control that involves reprocessing transactions that are rejected during initial processing is an example of:

• A) preventive controls
• B) detective controls
• C) corrective controls
• D) programmed controls

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Definitions:

Operating Activities

Activities that relate directly to the business's primary operations, including cash receipts from sales of goods and services and cash payments for expenses.

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Net Change in Cash

The total increase or decrease in a company's cash and cash equivalents over a specified period, reflecting cash inflows and outflows.

Conversion of Bonds

The process of exchanging bond securities for a predetermined number of shares of the issuing company's stock.