The Transaction Cycle Approach Yields Efficiencies When Processing of a Large

question 10

Multiple Choice

The transaction cycle approach yields efficiencies when processing of a large number of transactions because

• A)a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types.
• B)transaction cycles are easier to computerize.
• C)the transaction cycle approach represents the natural order of business.
• D)transaction cycles are easy to understand.

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Definitions:

Paid Today

A financial transaction or settlement completed on the current date.

Paid

The state of having been transferred money in exchange for goods or services.

Economic Value

A measure of the worth of goods or services based on their ability to fulfill needs or desires.

Interest Rate

The interest rate is the percentage of a loan amount that a lender charges as interest to the borrower, typically expressed as an annual percentage of the principal.