Which of the Following Represent Proper Information Processing Controls in the F

question 69

Multiple Choice

Which of the following represent proper information processing controls in the f financial process?

• A) Summarized daily information should be filed for future reference.
• B) Output distribution should be limited to authorized individuals.
• C) Checks of transactions only need to be done on transactions posted in other departments.
• D) All of the above represent proper information processing controls in the financial process.

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Definitions:

Days' Sales

A financial ratio that measures how efficiently a company uses its inventory by calculating the average number of days the company takes to sell its inventory.

Financial Ratios

Quantitative measures derived from financial statements used to assess a company's performance, financial health, and value.

Current Ratio

An indicator measuring a corporation's potential to handle its short-term financial obligations with assets on hand.

Common Size

A financial analysis technique that expresses each line item in a financial statement as a percentage of a base figure, aiding in comparison across different financial periods or companies.