The Basic Economics of File Processing Are Largely Determined by the Activity

question 25

Multiple Choice

The basic economics of file processing are largely determined by the activity ratio,which is the

• A) number of times a master file is accessed during a period.
• B) average number of transactions contained in a transaction file.
• C) number of accessed records times the number of records in the file.
• D) number of accessed records divided by the number of records in the file.

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Definitions:

Net Income

The total earnings of a company after subtracting all costs and expenses, including taxes and interest, from its total revenues.

Balance Sheet Columns

The sections within a balance sheet that display a company's assets, liabilities, and shareholders' equity at a specific point in time.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Current Assets

Resources owned by a company that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business.