In a Typical Computerized Accounting Information System,________

question 8

Multiple Choice

In a typical computerized accounting information system,________.

• A) transactions must be recorded in debit and credit format
• B) the software automatically knows to record a debit or a credit
• C) transactions are posted manually
• D) spreadsheets must be used to produce financial statements

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Definitions:

Financial Statement

A record that outlines the financial activities and current financial condition of a business, entity, or individual, including the balance sheet, income statement, and cash flow statement.

Solvency

The ability of an entity to meet its long-term financial liabilities and obligations.

Current Liabilities

Obligations that a company needs to pay off within one year or within the business's normal operating cycle.

Current Position Analysis

Current position analysis is a review of the operations, resources, and financial health to evaluate a company's current state.