A company updates its account receivable master file weekly and retains the master files and corresponding transaction files for the most recent two-week period. What is the purpose of this practice?
A) Permit reconstruction of the master file if needed.
B) Match logical relationships to detect errors in the master file records.
C) Verify run-to-run totals.
D) Match logical relationships to detect errors in the master file records

Question

Quizplus · Accepted Answer

By retaining the master files and corresponding transaction files for the most recent two-week period, the company can reconstruct the master file if needed, in case of any errors or discrepancies. This helps maintain accurate records and ensures that the company has the necessary data to resolve any issues that arise.

A Company Updates Its Account Receivable Master File Weekly and Retains