An Accounting Information System Captures Data That Are Eventually Grouped

question 18

Multiple Choice

An accounting information system captures data that are eventually grouped by account, and then used to prepare general purpose financial statements.The system could be described as:

• A)A view-driven AIS.
• B)An event-driven AIS.
• C)Either a view-driven AIS or an event-driven AIS.
• D)Neither a view-driven AIS nor an event-driven AIS.

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Definitions:

Barriers

Obstacles that prevent or hinder entry into a market or the pursuit of certain activities, which can be economic, legal, technical, or natural in nature.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a benefit to consumers equal to the cost of producing it.

Productive Efficiency

A state where goods and services are produced at the lowest possible cost and resources are utilized in the most efficient way.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.