Database Management Systems Have the Ability to Integrate Separate Data

question 105

Multiple Choice

Database management systems have the ability to integrate separate data files for various accounting applications.In the absence of integration,each type of accounting application will maintain its own independent data files.Which of the following is an advantage of maintaining separate files for accounting applications?

• A) Maintaining separate files is simple.
• B) Using independent files, accounting data must be fed into each application file numerous times.
• C) Since files are defined early in the implementation process, the evolving needs of applications may be constrained by the existing file structure.
• D) Independence among files often leads to different structures for the same data.

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Definitions:

Bond Carrying Amount

The net value of a bond recorded on the issuer's balance sheet, which can differ from its face value due to amortization of any discounts or premiums and issuance costs.

Sold At A Discount

Refers to selling an asset or security for a price that is less than its face value or original purchase price.

Fair Value Option

An accounting strategy giving companies the choice to measure financial assets and liabilities at fair value, to provide a more accurate picture of current market value.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.