Accounting Information Systems Have Five Generic Elements

question 17

Multiple Choice

Accounting information systems have five generic elements.A data flow diagram would be least helpful for which of the five?

• A)Processes
• B)Outputs
• C)Storage
• D)Internal control

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Definitions:

Prior Period Adjustments

Adjustments made to correct financial statements of previous periods due to errors or changes in accounting policy, ensuring accuracy in current financial reporting.

Statement Of Retained Earnings

A financial document that shows how a firm's earnings are reinvested in the business or paid out to shareholders.

Multiple-step

An income statement format that shows several steps to determine net income, including gross profit, operating income, and other income and expenses.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.