What Is the Overall Objective of Accounting Information Systems

question 15

Multiple Choice

What is the overall objective of accounting information systems?

• A)to provide information to users
• B)to manage the organization
• C)to prepare financial reports
• D)to report to the government

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Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services by a company before any expenses are deducted.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.