Which of the Following Is True of Data Processing and Storage

question 45

Multiple Choice

Which of the following is true of data processing and storage in a computerized information system?

• A)In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts.
• B)In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers.
• C)In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses.
• D)In a computerized accounting information system,companies need to spend large amounts of cash to ensure that their data and information are secure.

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Definitions:

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition.

Fair Market Value

The price at which a property would sell in a competitive and open market, reflecting the value agreed upon by a willing buyer and seller.

Financial Position

An overview of an entity's economic resources, obligations, and net worth at a point in time, typically represented by the balance sheet.

Owners' Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership's value in the firm.