A Bank That Uses a Computer System to Record Deposits

question 44

Multiple Choice

A bank that uses a computer system to record deposits and withdrawals from its customers' accounts is most likely to use a(n)

• A)inventory management system.
• B)transaction-processing system.
• C)expert system.
• D)group decision-support system.
• E)artificial intelligence system.

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Definitions:

Guaranteed Payment

Payments made to partners in a partnership regardless of the partnership's income, often for services rendered or for the use of capital.

Separately Stated Item

Items on a partnership or S corporation tax return that are listed separately to ensure proper tax treatment at the individual level.

Ordinary Expense

In tax terminology, ordinary expense refers to any expense common and accepted in your trade or business operation.

Income Recognition

The accounting principle stating that income should be recognized in the accounting period in which it is earned, regardless of when the cash is received.