Which of the Following Is a Disadvantage of Basic Data

question 4

Multiple Choice

Which of the following is a disadvantage of basic data analysis programs?

• A) They do not allow flexibility of application.
• B) They cannot accommodate data in certain formats, in which case the data must be converted.
• C) They do not support complex statistical calculations or similar higher functions.
• D) They are not suitable for forensic accounting engagements that require data mining.

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Definitions:

Multiple-Step Income Statement

An income statement format that separates operating activities from non-operating activities, distinguishing between sales and expenses directly related to the business's primary operations and other sources or uses of income.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to track financial transactions and prepare financial statements.

Interest Expense

The cost incurred by an entity for borrowed funds, considered as a non-operating expense on the income statement.

Perpetual Inventory System

An accounting method that continuously updates inventory records for each addition or subtraction, reflecting current inventory levels in real-time.