Accounting Information System Components Include

question 82

Multiple Choice

Accounting information system components include

• A) People
• B) Input data
• C) Software
• D) Hardware
• E) All of these

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Definitions:

Current Assets

Current assets are assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the firm to reinvest in its fundamental operations or to settle debts.

Common Stock

Equity ownership in a corporation, with voting rights and the potential for dividends.

Retained Earnings

The part of net profits not allocated for dividend distribution but held back by the firm for the purposes of reinvesting in its main business or settling debts.