The Use of Computerized Accounting Systems ________

question 214

Multiple Choice

The use of computerized accounting systems ________.

• A) makes it possible for most firms to operate without the expense of hiring or consulting with accountants.
• B) reduces the pressure on managers in making financial decisions.
• C) allows firms to generate financial information almost instantly and whenever the organization needs it.
• D) creates an environment in which accounting has become nothing more than glorified bookkeeping, as all accountants are required to do is enter data into the system and monitor the results the program generates.

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Definitions:

Cumulative

Describing a total that includes all amounts accumulated over a period of time, often used in the context of dividends that are accrued and paid at a later date.

Nonparticipating

Typically refers to insurance policies or investment plans where the holder does not share in profits or dividends beyond specified benefits.

Par Value

The nominal or face value assigned to a share of stock or a bond by the issuer.

Noncumulative

A type of preferred stock on which dividend payments are not accumulated if they are not declared.