Which of the Following Statements Regarding Reconciliation Accounts Are Not

question 27

Multiple Choice

Which of the following statements regarding reconciliation accounts are not true?

• A)Data are posted directly into them
• B)Data are automatically posted into them after they are posted to the corresponding sub-ledger
• C)The reconciliation account includes the sum of the postings of the sub-ledgers.
• D)None of the above

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Definitions:

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the reduction in value owing to wear and tear, age, or obsolescence.

Sensitivity Analysis

The study of how the variation in the output of a model can be apportioned, qualitatively or quantitatively, to different sources of variation in the input of a model.

Fixed Costs

Expenses that do not change with the level of production or output over the short term, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the amount of production or output levels.