Following Is the Result of Batch Control Totals on Employee

question 48

Multiple Choice

Following is the result of batch control totals on employee Social Security Numbers in a payroll processing transaction: The difference in the control totals is 720,000.Which data entry control would best prevent similar data entry errors in the future?

• A) Modulus 11
• B) Validity check
• C) Check digit
• D) Sequence check

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and principles that guide financial reporting and accounting practices in the United States.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition, not adjusted for inflation or changes in market value.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company with its subsidiaries, presenting it as if the group is a single entity.

Entity Principle

The Entity Principle is an accounting concept stating that a business must be accounted for separately from its owner or any other business entity.