Why Are Conventional Files Easy to Understand and Operate

question 24

Multiple Choice

Why are conventional files easy to understand and operate?

• A) Data are separated into files that mimic journals and ledgers in manual systems.
• B) Data are disaggregated but can be combined in numerous ways.
• C) Data can be visually checked.
• D) Data can be posted in real time.

---

Definitions:

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by their shares of the company's stock.

Cash Dividend

It's a payment made by a company out of its profits to shareholders, distributed in cash, based on the number of shares held.

Expense

An outflow of resources or incurrence of liabilities that result from a company's operations, aimed at generating revenue.

Prior Period Adjustment

A correction of errors in financial statements that were made in previous periods, affecting retained earnings on the balance sheet.