Which of the Following Is True of a Typical Computerized

question 63

Multiple Choice

Which of the following is true of a typical computerized accounting information system?

• A)The transactions are recorded in debit and credit format.
• B)By creating the invoice, the software knows automatically to record a debit or a credit.
• C)The business has to manually post the transaction.
• D)It cannot create financial statements.

---

Definitions:

Pooled Resources

The amalgamation of assets or capital from multiple sources or individuals for a common purpose, often to achieve a goal that would be difficult to achieve individually.

Tax Advantages

Financial benefits that apply to certain investments or accounts, which can reduce the amount of tax owed to the government.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Limited Liability

A form of legal protection for shareholders and owners that limits their losses to the amount of investment in the company, protecting personal assets from company debts and liabilities.