Which of the Following Statements About Contingency Plans Is Not

question 36

Multiple Choice

Which of the following statements about contingency plans is not true?

• A) Contingency plans should be as simple as possible.
• B) Only high-priority areas require the insurance of contingency plans.
• C) Contingency plans should be developed for favorable and unfavorable events.
• D) Develop contingency plans for all contingent events.
• E) Contingency plans minimize the impact of potential threats

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Definitions:

Operating Activity

Day-to-day actions and transactions that are directly related to running a business, such as sales and purchases.

Paying Wages

The act of compensating employees for their labor, typically calculated by hours worked or tasks completed.

Office Equipment

Non-consumable items used in an office setting for administrative or operational purposes, such as computers, printers, and furniture.

Measurement (Cost) Principle

An accounting principle that states assets and liabilities should be recorded at their original cost and factually supported values.