The Accounting Department at Synergy Hydroelectric Records an Average of 12,500

question 15

Multiple Choice

The accounting department at Synergy Hydroelectric records an average of 12,500 transactions per hour.By cost-benefit analysis,managers have concluded that the maximum acceptable loss of data in the event of a system failure is 25,000 transactions.The firm's recovery point objective is therefore

• A) 25,000 transactions
• B) 12,500 transactions
• C) 1 hour
• D) 2 hours

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Definitions:

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.

Total Dividends

The total sum of money paid to shareholders out of a company's earnings.

Equity Method

An accounting technique used to record an investment in another company, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profit or loss.