Which of the Following Best Describes the Primary Reason for Implementing

question 9

Multiple Choice

Which of the following best describes the primary reason for implementing a new information system, from a business perspective?

• A) The system enables the firm to create new products and services.
• B) The system will create new value for the firm, beyond its costs.
• C) The system will automate key business processes.
• D) The system is in use by our primary competitors.

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Definitions:

Deferred Expenses

Costs that are incurred but not expensed immediately and are carried on the balance sheet as an asset until recognized.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Accrued Taxes Payable

Liabilities for taxes that have been incurred but not yet paid.

Current Liability

A company's obligations or debts that are due to be paid to creditors within one year.