The Three Primary Components of Accounting Information Systems Are

question 77

Multiple Choice

The three primary components of accounting information systems are

• A) Relevance, compatibility, and flexibility
• B) Compatibility, flexibility, and cost-benefit
• C) Compatibility, flexibility, and safety
• D) Compatibility, timeliness, and cost-benefit
• E) Accounts payable, accounts receivable, and payroll

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Definitions:

Total Asset Turnover

A financial gauge assessing how well a company employs its assets to create sales turnover.

Cash Dividend

A payout in cash form from a corporation's profits to the individuals holding its shares.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the assets of a corporation, after deducting liabilities.

Net Profit Margin Ratio

A profitability metric that calculates the percentage of revenue remaining as profit after all expenses are deducted from total sales.