Accounting Information Systems Is an Important Area of Study for Future

question 75

Multiple Choice

Accounting information systems is an important area of study for future accountants because: (i) Developing a strong accounting information system helps achieve some of the components of the FASB Conceptual Framework of Accounting, (ii) Studying AIS helps students develop many of the core competencies suggested by the AICPA, (iii) Acquiring knowledge about AIS helps students learn more about common business processes.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) and (iii) only
• D)(i), (ii) and (iii)

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Definitions:

Consolidated Statement

Financial statements that represent the combined financials of a parent company and its subsidiaries, showing the total of assets, liabilities, and equities.

Financial Position

A snapshot of what a company owns and owes, represented on the balance sheet, including assets, liabilities, and equity at a specific point in time.

Date of Acquisition

The exact date on which one company obtains control of another, which is crucial for financial reporting and integration processes.

Fair Value Method

An accounting approach that measures and reports assets and liabilities at their estimated market value.