If the ERP System Is Turned on for the First

question 37

True/False

If the ERP system is turned on for the first time on Monday and sales people cannot login to get their sales report, this would be an example of a stabilization issue that needs to be tracked and debugged.

---

Definitions:

Prepaid Expense

An expense paid in advance of its due period, recorded as an asset on the balance sheet until it is actually incurred and then shifted to an expense account.

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so that they comply with the accrual concept.

Journal Entries

Records of financial transactions in the order they occur, which are then posted to the appropriate accounts.

Debits

Entries in accounting that increase an asset or expense account, or decrease equity, liability, or revenue accounts.