The Income Statement Line Item Most Likely Affected by an AIS

question 53

Multiple Choice

The income statement line item most likely affected by an AIS investment in enterprise systems would be:

• A)Revenues.
• B)Cost of Goods Sold.
• C)Selling,General and Administrative Expenses.
• D)Unearned Revenue.

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Definitions:

Capitalist Income

Income generated through the ownership of capital assets like businesses, stocks, or real estate, often distinguishing the earnings of capitalists from laborers.

Economic Rent

The excess payment or profit made over the minimum amount required to bring a factor of production into use.

Pure Rate of Interest

The rate of return on a risk-free investment, theoretically excluding the effects of inflation, default risk, and other factors.

Residual Claimants

Individuals or entities entitled to a share of an organization’s income only after all other claims, such as debts and taxes, have been satisfied.