Data Processing Uses Data to Produce Information for Management in Making

question 1

True/False

Data processing uses data to produce information for management in making decisions to solve problems.

---

Definitions:

Temporary Accounts

Accounts that are used to collect balances over a single accounting period, which are then reset by transferring the balance to a permanent account, including revenue, expense, and dividends accounts.

Nominal Accounts

Accounts that are closed at the end of each accounting period, including all income, expense, and withdrawal accounts.

Closing Process

The set of procedures undertaken at the end of an accounting period to prepare accounts for the next period, including closing temporary accounts to the permanent summary account.

Financial Statements

Consolidated documents that present the financial activities and condition of a business or individual, including the balance sheet, income statement, and cash flow statement.