An Operational Support System That Records and Processes Business Transaction

question 14

Multiple Choice

An operational support system that records and processes business transaction data is referred to as a:

• A) Management information system
• B) Decision support system
• C) Process control system
• D) Transaction processing system

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Definitions:

Times-Interest-Earned Ratio

This financial metric measures a company's ability to meet its debt obligations based on its current income, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Net Increase

The difference between the current period's value and the previous period's value when the current period's value is greater than the previous one.

Decrease in Cash

A reduction in the amount of cash held by a company, often reflected in its cash flow statement.

P/E Ratio

A valuation metric for a stock, calculated as the current market price per share divided by its earnings per share.