As a Processing Tool in the AIS, General Ledger Software

question 50

Multiple Choice

As a processing tool in the AIS, general ledger software can be useful in:

• A)A management audit.
• B)An investigative audit.
• C)Both a management audit and an investigative audit.
• D)Neither a management audit nor an investigative audit.

---

Definitions:

Common Size Income Statements

A financial statement in which all line items are expressed as a percentage of revenue, allowing for easy comparison across companies and time periods.

Revenues

The aggregate revenue from selling goods or providing services which constitute the core business activities.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Financial Ratios

Quantitative measures derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.