Sienna Used a Stack of Sales Invoices to Record Journal

question 8

Multiple Choice

Sienna used a stack of sales invoices to record journal entries in the AIS.She used those entries and others to prepare an income statement that was later reviewed by her supervisor.All the generic elements of the AIS are represented in Sienna's actions except:

• A)Internal controls
• B)Outputs
• C)Storage
• D)Inputs

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Definitions:

Stated Value

The nominal value assigned to no-par stock by the issuing company's board of directors.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

No-par Stock

Stock issued without a par value specified in the corporate charter or on the stock certificate.

Minimum Legal Capital

The least amount of capital that a company is required to maintain by law, to protect creditors from the company's liabilities.