Effective Accounting Information Systems Will Do All of the Following

question 156

Multiple Choice

Effective accounting information systems will do all of the following except:

• A)Collect data from transactions and events.
• B)Organize data in useful forms.
• C)Communicate information to business decision makers.
• D)Process data from transactions and events.
• E)Eliminate all errors.

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Definitions:

Cash Distribution

The payment of earnings or capital to shareholders, partners, or members from a corporation, partnership, or other entity, typically in the form of cash.

Noncash Assets

Assets that are not in the form of cash or cash equivalents, including physical property, intellectual property, and investments.

Remaining Cash

The amount of money that is available after all expenses and liabilities have been paid.

Capital Balances

The amount of money that partners or shareholders have contributed to a company, plus retained earnings or minus losses.