Source Documents

question 53

Multiple Choice

Source documents:

• A) Convert information to the system's processing component.
• B) Are input devices.
• C) Cannot be electronic files or web communications.
• D) Store processed information for future use.
• E) Provide the basic information processed by an accounting system.

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Definitions:

Owner's Equity

The value that accrues to the owners of a company after settling all its debts, equivalent to the assets minus the liabilities.

Residual Equity

Residual Equity represents the amount of equity that remains for the common shareholders after all liabilities and preferential stock claims have been settled.

Assets

Assets are possessions of an individual or a business that hold value and can yield benefits in the future.

Liabilities

Financial obligations or debts that a company owes to outside parties, which must be paid back in the future.