An Effective Accounting System Is Designed to Provide Which of the Following

question 29

Multiple Choice

An effective accounting system is designed to provide which of the following to help discover fraud?

• A) An audit trail
• B) Matching of expenses to revenues
• C) Set of controls
• D) Set of accounting procedures

---

Definitions:

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business or organization.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Accrual Basis

An accounting method where revenue and expenses are recorded when earned or incurred, regardless of when cash is exchanged.

Accounting

The systematic and comprehensive recording of financial transactions pertaining to a business, and the process of summarizing, analyzing, and reporting these transactions to oversight agencies and tax collection entities.