Month-End Posting to Controlling Accounts in a Computerized Accounting System

question 25

Multiple Choice

Month-end posting to controlling accounts in a computerized accounting system is not required because

• A) controlling accounts are not used in computerized systems.
• B) transactions are posted to accounts immediately.
• C) the input operator can choose to post to accounts at any time.
• D) computerized accounting posts entry at the end of the financial year.

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Definitions:

Raw Data

Unprocessed and unanalyzed information collected from observations, measurements, or responses, often the initial step before analysis or interpretation.

Conversion

The act of changing something into a different form or entity, often used in marketing to refer to turning prospects into customers.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when earned or incurred.

Accrual-Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.