What Should Be Done Before Any Changes Are Made to a System

question 2

Multiple Choice

 What should be done before any changes are made to a system that is experiencing a problem?

• A) Examine the system
• B) Backup data
• C) Establish a Theory
• D) Test your Theory

---

Definitions:

Interest Expense

The expense an entity faces for using borrowed capital, recorded as a non-operating cost on the income statement.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, reflecting its financial performance.

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the effect of compounding interest.

Stated Interest Rate

The interest rate declared on a bond or loan agreement, not necessarily reflecting the market interest rate or effective interest rate.