Accounting Information Systems Have Five Generic Elements

question 49

Multiple Choice

Accounting information systems have five generic elements.Which of the following would most appropriately be labeled "storage" within the context of the sales/collection process?

• A)A paper file of outstanding customer invoices
• B)An electronic database of sales transactions
• C)Both a paper file of outstanding customer invoices and an electronic database of sales transactions
• D)Neither a paper file of outstanding customer invoices nor an electronic database of sales transactions

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Definitions:

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock.

Market Value

The financial value at which an asset could be bought or sold in the market.

Total Debt Ratio

A financial metric that divides the total liabilities of a company by its total assets.

Capital Structure

The mix of different forms of funds used by a company to finance its overall operations and growth, including debt, equity, and hybrid instruments.