To Safeguard a Business's Assets and Reduce the Likelihood of Fraud

question 104

Multiple Choice

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

• A) should be manual
• B) must be flexible to accommodate changes in a business over time
• C) should work smoothly with the business's employees
• D) must provide adequate controls of a business's assets and data

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Definitions:

Non-Eligible Dividends

Dividends paid from income that has not been taxed at the corporate level, often subject to a different tax rate on the recipient's end.

Operating Cash Flow

Cash generated by a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.

Current Liabilities

Financial obligations a company needs to settle within one year.

Note Payable

A financial obligation represented by a written promissory note which specifies the amount and terms under which the money must be repaid.