The Financial Management System of a Software Company Automatically Updates

question 5

Multiple Choice

The financial management system of a software company automatically updates the general ledger whenever there are any transactions in the company's accounts receivable and accounts payable. This is an example of the financial system's ________.

• A)compliance reporting
• B)exception reporting
• C)service delivery applications
• D)integration of components

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement.

Market Rate

The current price or interest rate at which securities, commodities, or currencies can be bought or sold in a marketplace.

Contract Rate

The contract rate is the interest rate specified in a contract, especially in lending agreements or bond issuances, dictating the interest payments to be made.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its worth at issuance.