Which of the Following Statements Is Not Correct

question 90

Multiple Choice

Which of the following statements is not correct?

• A)The audit trail is intended to verify the validity and accuracy of transaction recording.
• B)The audit trail consists of records stored sequentially in an audit file.
• C)The audit trail provides the means for locating and examining source documents.
• D)The audit trail is created with document numbers and posting references.

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Definitions:

Lump Sum

A single payment made at a particular time, as opposed to multiple payments made over time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Discount Rate

The interest rate applied within the framework of discounted cash flow analysis to estimate the present value of future cash inflows.

Present Value

The present-day worth of money expected in the future or series of cash flows, calculated using a fixed rate of return.