Consider the Flowchart Below as You Respond to the Question

question 29

Multiple Choice

Consider the flowchart below as you respond to the question: Which of the following statements is most true based on the systems flowchart above?

• A)The credit approval process is completely automated.
• B)The type and nature of documents used in the system should be clearer.
• C)Both the credit approval process is completely automated and the type and nature of documents used in the system should be clearer.
• D)Neither the credit approval process is completely automated nor the type and nature of documents used in the system should be clearer.

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Definitions:

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts.

Debited

An accounting term indicating that an amount has been recorded on the left side of a ledger or account, increasing assets or decreasing liabilities and equity.

Rent Expense

An expense account that records the cost incurred by a business to rent a property or equipment for its operations.

Fees Earned

Income earned from providing services or performing work for clients or customers.