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NEW QUESTION: 1
A clerk changed the interest rate for a loan on a master file. The rate entered is outside the normal range for such a loan. Which of the following controls is MOST effective in providing reasonable assurance that the change was authorized?
A. The system displays a warning message to the clerk.
B. The system will not process the change until the clerk's manager confirms the change by entering an approval code.
C. The system generates a weekly report listing all rate exceptions and the report is reviewed by the clerk's manager.
D. The system requires the clerk to enter an approval code.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice A would prevent or detect the use of an unauthorized interest rate. Choice B informs the manager after the fact that a change was made, thereby making it possible for transactions to use an unauthorized rate prior to management review. Choices C and D do not prevent the clerk from entering an unauthorized rate change.

NEW QUESTION: 2

A. Application
B. Session
C. Physical
D. Data-Link
Answer: D

NEW QUESTION: 3
The following items were among those that were reported on Lee Co.'s income statement for the year
ended December 31, 1989:

The office space is used equally by Lee's sales and accounting departments. What amount of the above
listed items should be classified as general and administrative expenses in Lee's multiple-step income
statement?
A. $325,000
B. $500,000
C. $410,000
D. $290,000
Answer: D
Explanation:

Note: 1/2 of the office space of $240,000 was used by the sales department, which should be allocated to
"selling expenses" (not general and administrative).
Choice "a" is correct. $290,000.