Which of the Following Statements Is TRUE About the Relationship

question 55

Multiple Choice

Which of the following statements is TRUE about the relationship between business processes and information systems (IS) ?

• A) A business process and an information system (IS) have the same purpose.
• B) An information system (IS) in an organization is used by only one business process.
• C) Every activity in a business process is a component of an information system (IS).
• D) Information system (IS) elements are embedded within a business process.

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Definitions:

Cash-basis

An accounting method that recognizes revenues and expenses only when cash is exchanged, as opposed to when they are incurred.

Tax Depreciation

The allowable deduction for depreciation of assets for tax purposes, calculated using methods prescribed by the IRS.

Financial Statement Income

The income reported by a company on its financial statements, which includes revenues, expenses, gains, and losses.

Domestic Corporation

A corporation that is incorporated under the laws of the country in which it is doing business.