Which of the Following Statements Is an Advantage to Using

question 53

Multiple Choice

Which of the following statements is an advantage to using the test data technique in information systems auditing?

• A) The test can be run only on a specific program at a specific point in time.
• B) The test must be announced.
• C) Test data is limited to certain combinations of processing conditions.
• D) The technique is used for testing programs in which calculations such as interest or depreciation are involved.

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Definitions:

Weighted Average Cost

Reflects the average cost per unit of inventory, factoring in all costs of items purchased at various prices.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake.

Debt

A sum of money lent by one party to another, with the agreement it will be repaid later, typically with additional interest.

Financial Leverage

Taking advantage of borrowed finances to raise the possible outcomes of an investment.