Which of the Following Is True of Data Processing and Storage

question 48

Multiple Choice

Which of the following is true of data processing and storage in a computerized information system?

• A)In a computerized accounting information system,processing includes manually journalizing transactions and posting to the accounts.
• B)In a computerized accounting information system,there will be a main centralized computer where data is stored,which cannot be accessed from any other computers.
• C)In both computerized and manual systems,all data are contained in paper documents and are often stored in filing cabinets and off-site document warehouses.
• D)In a computerized accounting information system,companies are spending increasingly large amounts of cash to ensure that their data and information are secure.

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Definitions:

Loss on Purchase Commitments

A financial loss that occurs when a company commits to purchasing goods at a certain price but the market value of these goods decreases before the purchase is completed.

Continuing Operations

The segments or activities of a business expected to continue for the foreseeable future, excluding any discontinued operations.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized or accounted for.

Conservatism

An accounting principle that dictates to recognize expenses and liabilities as soon as possible, but revenues and assets only when they are assured of being received.