Which of the Following Statements About an ERP System Is

question 2

Multiple Choice

Which of the following statements about an ERP system is true?

• A) It enables personnel throughout an organization to view the same data.
• B) It makes extensive use of legacy systems.
• C) It is small with a comprehensive set of functionality.
• D) It does not consist of modules.
• E) The largest vendor of ERP systems is Baan.

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Definitions:

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, divided into operating, investing, and financing activities.

Operating Activities

Financial transactions and events related to the core business functions, including revenue and expense activities.

Indirect Method

A cash flow statement presentation method that adjusts net income for the changes in balance sheet accounts to calculate cash flow from operating activities.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, often referred to as the bottom line.