Identify the Purpose of a Transaction Processing System Used in Organizations

question 89

Multiple Choice

Identify the purpose of a transaction processing system used in organizations.

• A) to support the activities within a specific functional area of the firm
• B) to handle day-to-day business event data at the operational level of the organization
• C) to produce detailed information to help manage a firm or part of a firm
• D) to support the coordination of suppliers, product or service production, and distribution
• E) to enable customers to buy goods and services from a firm's Web site

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Definitions:

Liquidation

The method of terminating a business and allocating its assets to those who have claims, typically happening when the business cannot pay its debts.

Noncash Assets

Assets owned by a business that are not cash, including property, equipment, and intellectual property.

Capital Deficiencies

Capital deficiencies occur when a company's financial resources and assets are not sufficient to cover its liabilities and debts.

Income Ratios

Financial metrics that compare various forms of income to another number on the company's financial statement, often used to assess financial health and profitability.