When Comparing REA Diagrams Used to Design an AIS with a Traditionally

question 82

Multiple Choice

When comparing REA diagrams used to design an AIS with a traditionally designed AIS,

• A)traditional AIS information,such as journals and ledgers no longer exist.
• B)similar information is present as in a traditional AIS,but stored in a different format.
• C)queries are used to input data into the AIS.
• D)an REA designed AIS cannot recreate a traditional journal.

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Definitions:

Yield to Maturity

The total anticipated return on a bond if held to its maturity date, including all interest payments and capital gains or losses.

Required Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the risk level of the investment.

Flotation Cost

Flotation Cost refers to the costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage.