An Accounting Information System Captures Data That Are Eventually Grouped

question 14

Multiple Choice

An accounting information system captures data that are eventually grouped by account, and then used to prepare general purpose financial statements. The system could be described as:

• A)A view-driven AIS.
• B)An event-driven AIS.
• C)Either A or B.
• D)Neither A nor B.

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Definitions:

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Contract Rate

The agreed-upon price or interest rate outlined in a contract for services or loans.

Installment Notes

A form of debt that requires the borrower to make scheduled periodic payments of principal and interest over a set period until the debt is paid off.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as an annual percentage of the principal.