The Use of Computers in Accounting Has

question 155

Multiple Choice

The use of computers in accounting has:

• A)made it possible for most firms to operate without the expense of hiring or consulting with accountants.
• B)reduced the pressure on managers in making financial decisions.
• C)allowed firms to have continuous auditing ability so that they can continuously track financial problems and quickly spot problems like cash flow difficulties.
• D)created an environment in which accounting has become nothing more than glorified bookkeeping,as all accountants are required to do is enter data into the system and monitor the results the program generates.

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Definitions:

Net Purchases

The total amount of goods bought by a company during a period, minus any returns, allowances, or discounts.

Invoice Date

The date marked on an invoice which indicates when it was issued.

Sales

The transactions between a company and its customers involving the exchange of goods or services for payment.

Monthly Sales

The total revenue generated from goods sold or services rendered by a company during a one-month period.