Oklahoma Chemicals Plans to Use Its Computers to Post Information

question 225

Multiple Choice

Oklahoma Chemicals plans to use its computers to post information from journals to the ledger instantaneously.One obvious benefit of this technology is:

• A)A reduction in the number of accountants required by the firm.
• B)Less scrutiny from agencies such as the Internal Revenue Service.
• C)To shift financial decision making from people to programmed technology.
• D)Readily available financial information.

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Definitions:

Current Liabilities

Obligations or debts that a company is expected to pay within one fiscal year or its operating cycle, whichever is longer.

Long-term Bank Loans

Long-term bank loans are borrowings from banks with repayment terms extending beyond one year, used for financing significant investments or operations.

Marketable Securities

Financial instruments that can be quickly converted into cash at a reasonably predictable price.

Capital Gains

The profit from the sale of assets or investments, such as shares or property, which exceeds the purchase cost.