Which of the Following Is True of an Accounting Software

question 36

Multiple Choice

Which of the following is true of an accounting software system?

• A)It is categorized as hardware electronic equipment.
• B)It cannot save any transaction data.
• C)It can read,edit,and store transaction data.
• D)It cannot be customized for different types of businesses.

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Definitions:

Contra-Revenue

An account that offsets revenue accounts on the income statement, typically related to returns, allowances, and discounts.

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Terms 3/10

A payment term indicating that a buyer can take a 3% discount on the invoice amount if the payment is made within 10 days of the invoice date.

Credit Terms

The conditions under which a seller will extend credit to a buyer, including the repayment time frame and any interest charged.