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Commerce · Q342

Costing

Graduate and Post Graduate · Commerce · question 342

Q342

An ability of an accounting system, to point out use of resources in every step of production process is called

A.
back-flush trails
B.
audit trails
Answer
C.
trigger trails
D.
lead manufacturing trails

Answer: Option B

Solution

Answer: Option B
Solution:
An ability of an accounting system, to point out use of resources in every step of production process is called audit trails. An audit trail is a step-by-step record by which accounting or trade data can be traced to its source.