Which of the Following Statements About Particular Data Files Is

question 72

Multiple Choice

Which of the following statements about particular data files is correct?

• A) Transaction files correspond to paper ledgers in paper-based accounting systems.
• B) Master files correspond to the paper journals in paper-based accounting systems.
• C) Transaction files are a hybrid of master files and open files.
• D) The general ledger master file stores the account balances reported on the financial statements.

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Definitions:

Lease Payments

Regular payments made by a lessee to a lessor for the use of leased property, equipment, or vehicles, as agreed upon in a lease contract.

Deductible Business Expenses

Expenses incurred during business operations that can be subtracted from gross income to reduce taxable income.

Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time due to use and wear.

Tax Purposes

The reason or intent behind financial decisions or transactions primarily to comply with tax regulations or optimize tax benefits.