Oklahoma Chemicals Plans to Use Its Computers to Post Information

question 225

Multiple Choice

Oklahoma Chemicals plans to use its computers to post information from journals to the ledger instantaneously.One obvious benefit of this technology is:

• A)A reduction in the number of accountants required by the firm.
• B)Less scrutiny from agencies such as the Internal Revenue Service.
• C)To shift financial decision making from people to programmed technology.
• D)Readily available financial information.

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Definitions:

Note Receivable

A written promise for amounts to be received, typically including interest, by one party from another.

Liability

An obligation or debt that arises during the course of business operations, which the company is responsible to repay.

Equipment Purchase

The acquisition of physical assets, such as machinery or tools, that are used in the operations or production processes of a business.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual percentage of the principal.