Fairfax Corporation Uses Two Systems for Revenue Cycle Transaction Processing

question 32

Multiple Choice

Fairfax Corporation uses two systems for revenue cycle transaction processing.One system keeps track of customer sales.The other system keeps track of accounts receivable.Last year,Fairfax Corporation decided to merge the two systems into one so that both functions could be performed in the same system.This is an example of

• A)competitive advantage.
• B)technological innovation.
• C)productivity gains.
• D)systems integration.

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Definitions:

Installment Note

A debt instrument that requires the borrower to make regular payments of principal and interest over a specified period until the debt is paid in full.

Issue Price

The price at which a company's securities, such as bonds or shares, are first sold to the market.

Registered Bonds

Registered bonds are securities that are recorded in the name of the holder on the issuing company's books, ensuring that interest payments are made to the registered owner.

Finance Leases

Leasing agreements that transfer substantially all risks and rewards of ownership of the asset from the lessor to the lessee.