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:

Underwriters

Professionals or entities that evaluate and assume the risk of another party, often in the context of issuing insurance policies or underwriting securities in financial markets.

Offer Price

The price at which an asset or service is offered for sale to potential buyers.

Ex-Rights Price

The ex-rights price is the stock price after the rights to purchase additional shares at a discount have been separated from the stock.

Rights Offering

A financial mechanism by which current shareholders are given the right to purchase additional shares before the public, often at a discount.