This Compares the Results Produced by More Than One Method

question 67

Multiple Choice

This compares the results produced by more than one method to verify accuracy.

• A)Concurrent update control
• B)Cross-footing balance test
• C)Data matching
• D)Recalculation of batch totals

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Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the profit made during a specific period.

Operating Activities

Activities directly related to the operation of the business, including production, sales, and day-to-day business management.

FASB

The Financial Accounting Standards Board is an independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.