Which of the Following Is Not an Example of an Applications

question 2

Multiple Choice

Which of the following is not an example of an applications control?

• A) Back-up of data to a remote site for data security.
• B) There is a preprocessing authorization of the sales transactions.
• C) There are reasonableness tests for the unit selling price of a sale.
• D) After processing, all sales transactions are reviewed by the sales department.

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Definitions:

Personal Expense

Expenses incurred by individuals for non-business-related activities, often not tax-deductible.

Goodwill Method

An accounting approach for handling goodwill during a business combination, where goodwill is not amortized but tested annually for impairment.

Capital Balances

The amounts shown in a company’s books representing the capital owned by partners or shareholders.

Profit and Loss

A financial statement, also known as an income statement, that provides a summary of a company's revenues, expenses, and profits/losses over a given period of time.