Electronic Data Interchange Is

question 7

Multiple Choice

Electronic data interchange is

• A) transferring data back and forth between two or more entities.
• B) sending information to one insurance carrier.
• C) sending information to one clearinghouse for processing.
• D) None of the above

---

Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not necessarily align with the calendar year.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, ensuring the debits equal the credits.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Compound Interest

This approach to interest calculation includes both the initial principal amount and the compounded interest from earlier stages of a deposit or borrowing.