The Discovery and Correction of Errors Is Important in a Computerized

question 110

Essay

The discovery and correction of errors is important in a computerized system. What kind of error(s) might occur in these systems? What type of error(s) will be prevented in a computerized system?
Potential errors:
1. Failing to record transactions.
2. Recording a transaction more than once.
3. Recording a transaction in incorrect accounts.
4. Entering an incorrect number in both the debit and credit parts of the transaction.

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Definitions:

Technically Insolvent

A financial state where an entity's liabilities exceed its assets, but it has not yet declared bankruptcy.

Bankruptcy Relief

Legal procedures designed to help individuals or businesses that cannot pay their debts to either eliminate those debts or repay them under the protection of bankruptcy court.

Businesses

Organizations engaged in commercial, industrial, or professional activities with the aim of earning profits.

Chapter 7

A provision under the U.S. Bankruptcy Code dealing with the process of liquidation, where a debtor's assets are sold to pay creditors.