The Flow of Financial Data Through the Accounting Information System

question 77

Multiple Choice

The flow of financial data through the accounting information system does NOT include

• A) analyzing transactions.
• B) journalizing and posting transactions.
• C) preparing a trial balance.
• D) paying an account payable.

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Definitions:

Investment

Designating financial means with the prospect of attaining profit or income.

Capital Intensity Ratio

A financial metric that compares a company's total assets to its sales revenue, used to evaluate how much capital is needed to generate sales.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, as reported on the balance sheet.

Capacity Utilization

The percentage of a firm or industry's total production capacity that is actually being used over a specific period.