Totally Computerized Systems Such as a Quick Response Systems

question 6

Multiple Choice

Totally computerized systems such as a quick response systems

• A) eliminate traditional internal control problems.
• B) still require human intervention in the transaction processing cycle.
• C) intensify certain internal control problems.
• D) still require paper documents in EDI applications.

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Definitions:

Acquisition Method

An accounting process used during the consolidation of financial statements that involves combining the buying and selling entities' assets and liabilities.

Consolidated Financial Statements

Financial documents that combine the accounting records of a parent company and its subsidiaries, presenting the financial position as if they were a single entity.

Equity Method

An accounting technique used to assess the profits earned by a company through its investment in another company, recognizing income or loss in proportion to its ownership share.

Consolidated Current Liabilities

The combined total of all short-term financial obligations and debts of a parent company and its subsidiaries, due within one year.