Transaction Processing Systems Are Primarily Used to Automate Business Processes

question 71

Multiple Choice

Transaction processing systems are primarily used to automate business processes. Automation increases efficiency and effectiveness, while reducing head count which in turn reduces the overall operational ________.

• A) costs
• B) systems
• C) revenues
• D) intelligence

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal portion of the cost of a fixed asset to each accounting period over its useful life.

Amortization

The process of gradually reducing the cost of an intangible asset through scheduled periodic payments over its useful life.

Annual Interest Expense

Annual Interest Expense refers to the total cost incurred by an entity over a fiscal year for borrowing funds, encompassing interest payments on loans, bonds, and other forms of debt.

Semiannually

Occurring or done twice a year, typically every six months.