In a Typical Computerized Accounting Information System,________

question 8

Multiple Choice

In a typical computerized accounting information system,________.

• A) transactions must be recorded in debit and credit format
• B) the software automatically knows to record a debit or a credit
• C) transactions are posted manually
• D) spreadsheets must be used to produce financial statements

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Definitions:

Interest Note

A legal document that outlines the terms under which interest will be paid on borrowed funds.

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Notes Receivable

Written promises for amounts to be received by a business, typically recognizable as assets on the balance sheet because they represent a legal obligation for the payer to settle the debt.

Interest Receivable

The amount of interest income that has been earned but not yet received in cash.