All of the Following Statements Are True About Information Technology's

question 70

Multiple Choice

All of the following statements are true about information technology's impact on business firms except:

• A)it helps firms expand in size.
• B)it helps firms lower the cost of market participation.
• C)it helps reduce internal management costs.
• D)it helps reduce transaction costs.
• E)it helps reduce agency costs.

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Definitions:

Equipment

Tangible property used in the operation of a business that is not intended for sale, typically having a useful life longer than one year.

Credit Side

The right side of a financial ledger, where increases in liabilities, equity, and revenue, and decreases in assets and expenses are recorded.

Chart Of Accounts

A numbering system of accounts that lists the account titles and account numbers to be used by a company.

Account Balance

The difference between the debits and credits recorded in an account, representing the net value at a point in time.