CPY Corporation Replaces One Third of Its Computers Every Year;

question 13

Multiple Choice

CPY Corporation replaces one third of its computers every year; SLP Corporation replaces its computers when employees submit a request, but no more frequently than once every four years.Which of the following statements is most true?

• A)CPY's replacement policy does a better job safeguarding assets.
• B)SLP's replacement policy does a better job safeguarding assets.
• C)Neither replacement schedule helps achieve the internal control purpose of safeguarding assets, but replacing a computer may help promote operating efficiency.
• D)Neither replacement schedule helps achieve the internal control purpose of safeguarding assets because information is not an asset reported on the balance sheet.

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Definitions:

Deaths

The termination of all biological functions that sustain a living organism, marking the end of its life.

Added To Population

The process or event of introducing new individuals to an existing group or biological population, thereby altering its size or genetic composition.

Births

The act or process of bringing forth offspring or the occurrence of being born.

Immigration

The action of coming to live permanently in a foreign country, differing from emigration, which denotes the act of leaving one's country.