The Proper Order of Activity in an Accounting Information System

question 22

Multiple Choice

The proper order of activity in an accounting information system would be as follows:

• A)Capture, Record, Process, Report
• B)Process, Record, Capture, Report
• C)Capture, Process, Report, Record
• D)Record, Capture, Process, Report

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Definitions:

Discount

A reduction in the price of a good or service, typically to encourage purchase.

Cash Interest

The actual amount of interest paid in cash by a borrower during a given period for the use of borrowed funds.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments due on any type of debt for a specific period.

Issuing Company

A corporation or entity that releases or sells financial instruments like stocks or bonds to raise capital.