The Development of a New Information System Is Economically Justified

question 53

Multiple Choice

The development of a new information system is economically justified if the ___________.

• A)benefits outweigh the costs
• B)operational costs are high
• C)return on investment is negative
• D)costs exceed returns

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Definitions:

Prepaid Rent

An asset account that represents rent payments made in advance of the period to which they relate.

Rent Payment

The amount paid periodically by a tenant to a landlord in exchange for the use of a property, room, or apartment.

Unearned Rent Revenue

Income received by a landlord for rent that has been paid in advance but is not yet earned as the period has not occurred.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability.