AIS Can Be Linked to Other Areas of Study in Accounting

question 40

Multiple Choice

AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following pairs a generic element of the AIS with a specific example from financial accounting?

• A)Bank reconciliation, internal control
• B)Adjusting entries, output
• C)Financial statements, storage
• D)FASB Conceptual Framework, input

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Definitions:

Withdraw

The act of removing funds from a bank account or the cessation of investment in a particular asset or undertaking.

Retire

The act of withdrawing from one's position or profession, often marking the end of one's career.

Invested Funds

Money or capital that has been invested in a business, project, or financial asset, often seeking to generate returns.

Annuity

A financial product that provides a series of payments made at equal intervals, which can be used as a retirement income strategy.