Ethan Is an Accountant for a Small Startup Business

question 57

Multiple Choice

Ethan is an accountant for a small startup business.He is trying to decide if the business should use paper-based journals and ledgers or a spreadsheet to record transactions.He is therefore making a decision about which generic element of the AIS?

• A)Inputs
• B)Processes
• C)Outputs
• D)Technology

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Definitions:

Model Business Corporation Act

A set of model laws designed to standardize and simplify the legal structure of corporations across the United States.

Ratifies

The act of officially confirming or endorsing a decision, making it formally valid.

Adoption

In corporation law, a corporation’s acceptance of a preincorporation contract by action of its board of directors, by which the corporation becomes liable on the contract.

Novation

The act of replacing one obligation with a new one, extinguishing the original obligation.