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.

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Definitions:

Complex Capital Structure

A financial structure that includes various forms of securities, such as different classes of stock and convertible securities, which can affect the computation of earnings per share.

Diluted Earnings

A measure of a company's profitability that accounts for all potential shares that could be outstanding, providing a worst-case scenario for earnings per share.

Basic Earnings

Net income divided by the number of outstanding shares, representing a company's profit allocated to each share of stock.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock.