If a Firm Does Not Use an ERP,the Best Way

question 65

Multiple Choice

If a firm does not use an ERP,the best way to mitigate the risk of the destruction of master data is to

• A)implement backup and disaster recovery procedures.
• B)use an ERP.
• C)proper segregation of duties.
• D)use multiple master data files.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.

Sale Date

The specific date on which a sale transaction is recognized in the accounting records, marking when the ownership and risks of goods pass from the seller to the buyer.

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recognized at cost and subsequently adjusted for the investor’s share of the investee’s profit or loss.

Investment Account

A financial account held at a brokerage or financial institution that contains securities, cash, and other holdings for investment purposes.