An Accounting Information System (AIS)collects, Records, Stores, and Processes Accounting

question 104

True/False

An accounting information system (AIS)collects, records, stores, and processes accounting data to produce information that is useful for decision makers.

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Definitions:

Debts Of Entity

Financial obligations that a company or individual owes to external parties or creditors.

Monetary Unit Assumption

An accounting principle that assumes money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis.

GAAP

Stands for Generally Accepted Accounting Principles; these are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Corporation

A legal entity owned by shareholders, recognized as a separate entity from its owners, with rights and liabilities distinct from those of its members.