The Principles of Normalization Can Be Useful In

question 11

Multiple Choice

The principles of normalization can be useful in:

• A)Designing an accounting information system.
• B)Completing a systems audit.
• C)Both designing an accounting information system and completing a systems audit.
• D)Neither designing an accounting information system nor completing a systems audit.

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Definitions:

Average Daily Float

The average daily float refers to the difference between checks written and checks cleared or deposited, highlighting the average amount of unprocessed checks within a certain timeframe.

Clearing Times

The time taken for the transfer of funds or securities from one party to another to be completed and the transaction to be settled.

Miller-Orr Model

A financial model used for cash management, it helps in determining the optimal level of cash balance and controls the costs associated with cash balances.

Weekly Cash Flows

The movement of cash in and out of a business on a weekly basis, tracking how money is spent and received.