1. A company is considering implementing a new accounting software

system. Which of the following should be the primary consideration for

establishing security roles within the software?

 A) Employee job titles

 B) Sensitivity of financial data

 C) Number of system users

 D) Software cost

 Answer: B) Sensitivity of financial data

 Rationale: Security roles should be established based on the sensitivity

of financial data to ensure that access is appropriately restricted and data

integrity is maintained.

2. When setting up banking activities in the accounting software, what is

the most important factor to consider for reconciliation purposes?

 A) Timely data entry

 B) Frequency of bank statements

 C) Accuracy of transaction recording

 D) Number of bank accounts

 Answer: C) Accuracy of transaction recording

 Rationale: Accurate recording of transactions is crucial for

reconciliation as it ensures that the company's records match the bank

statements, highlighting any discrepancies.

3. A customer has exceeded their credit limit. What action should the

company take?

 A) Increase the credit limit

 B) Suspend further sales until payment is received

 C) Offer a discount on future purchases

 D) Write off the debt as bad

 Answer: B) Suspend further sales until payment is received

 Rationale: Suspending further sales helps manage credit risk and

encourages the customer to settle their outstanding balance.

4. Which document is essential for recording a sale and subsequent

invoicing?

 A) Purchase order

 B) Sales order

 C) Delivery note