Examlex
Jupiter Shop is an online store. Customers have to create an online account to purchase products. The purchased products are delivered free of cost. The address of delivery is stored, so that customers can choose the same address for future purchases. Jupiter Shop features seasonal discounts and exchange offers. It also accumulates redeemable points for regular shoppers. Which of the following statements describes the use of information systems (IS) by Jupiter Shop to lock in customers?
Depreciation
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.
Retained Earnings
The portion of a company's profit that is held back and not distributed to shareholders, used for reinvestment or debt payment.
Dividend
A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Expense Matching
An accounting principle that states expenses should be recorded in the same period as the revenues they helped to generate, to accurately match income with expenses.
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