Which Is Probably the Most Significant Effect of Database Technology

question 24

Multiple Choice

Which is probably the most significant effect of database technology on accounting?

• A)replacement of the double entry-system
• B)change in the nature of financial reporting
• C)elimination of traditional records such as journals and ledgers
• D)quicker access to and greater use of accounting information in decision-making

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Definitions:

Inventory Cost Card

A record-keeping tool that tracks the cost associated with a specific item of inventory, detailing purchases, sales, and adjustments.

Perpetual Inventory System

An inventory management system where updates to inventory records are made in real-time following each sale or purchase transaction.

FIFO

An inventory valuation method that assumes the first items acquired are the first ones sold, standing for First-In, First-Out.

Last-in, First-out

An inventory valuation method where the most recently produced or purchased items are the first to be expensed, often used to manage costs and taxes.