Which of the Following Statements Regarding Accounting Information Systems Is

question 18

Multiple Choice

Which of the following statements regarding accounting information systems is not true?

• A)Accounting information systems consist of people,records,methods,and equipment.
• B)Accounting information systems are more important than ever to decision makers.
• C)Accounting information systems cannot improve on a company's competitive edge.
• D)Accounting information systems are designed to provide output including financial,managerial,and tax reports.
• E)Accounting information systems are designed to capture information about a company's transactions.

---

Definitions:

Net Loss

Occurs when a company's total expenses exceed its total revenues, indicating a negative profit for a specific time period.

Prepaid Insurance

An asset account that represents benefit expenses that have been paid in advance and are gradually recognized as expenses over the policy period.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or provided, considered a liability until the goods or services are delivered.

Double Rule

A method used in accounting to draw attention to totals or end of reports by placing two lines beneath them for emphasis.