A Company's Transaction Processing System Processes Both Financial and Non-Financial

question 149

Multiple Choice

A company's transaction processing system processes both financial and non-financial transactions.Which of the following is a non-financial transaction?

• A)Purchase of inventory from supplier
• B)Sale of goods to a customer
• C)Updating credit history of a customer
• D)Lease payment on president's automobile

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Definitions:

Special Order

An order for a product or service that is outside the company's standard offerings, often requiring customization.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal circumstances.

Sunk Costs

Sunk costs are past expenses that have already been incurred and cannot be recovered, and thus should not affect future business decisions.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.