A Computerized Accounting System Will Not Allow Which of the Following

question 107

Multiple Choice

A computerized accounting system will not allow which of the following type of journalizing error?

• A) Entering an amount in an incorrect account
• B) Reversing the debit and credit account in a transaction
• C) Processing a transaction that has unequal debits and credits.
• D) Entering a transaction with an incorrect date.

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Definitions:

Discount Rate

This refers to the interest rate applied for computing the present value of forthcoming cash flows in the context of discounted cash flow analysis.

Present Value

The current valuation of future monetary sums or cash flow streams, using a given return rate for discounting.

Capital Cost Allowance (CCA)

A taxable expense in Canada that a business can claim for the depreciation of tangible property.

Required Rate Of Return

The lowest annual return percentage that persuades individuals or companies to commit capital to a particular project or security.