Information Systems Support the Major Functional Areas of a Business

question 21

True/False

Information systems support the major functional areas of a business including manufacturing, finance, accounting, human resources, and marketing.

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate and compare the profitability of investments, which calculates the difference between the present value of cash inflows and outflows.

Concentration Accounts

A single account used by companies to aggregate funds from different accounts, simplifying cash management.

Lockboxes

A banking service where payments are sent to a special post office box rather than to the company's offices, to speed up transaction processing.

Disbursement Float

The time lag between when a payment is made by writing a check and when the funds are actually removed from the payer's account.