Which of the Following Is TRUE of the Comparison Between

question 27

Multiple Choice

Which of the following is TRUE of the comparison between a manual and a computerized accounting information system?

• A) In both manual and computerized systems, reports and financial statements must be created using Word documents, Excel spreadsheets, or PowerPoint.
• B) In a computerized system, the software can generate financial reports instantaneously that cannot be formatted.
• C) In a manual system, data are contained in paper documents, which are often stored in filing cabinets and off-site document warehouses; whereas in a computerized system, data are stored on a main computer called a server.
• D) In both manual and computerized systems, processing data includes manually journalizing transactions and posting to the accounts.

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Definitions:

Goodwill

An intangible asset that arises when a company is purchased for more than the fair market value of its net assets, often attributed to reputation, brand, or intellectual property.

Entire Business

The complete operational structure of a company, including all assets, liabilities, operations, and activities.

Natural Resources

Resources that occur naturally in the environment and are utilized for economic gain, such as water, minerals, forests, and fossil fuels.

Land Improvements

Enhancements made to a plot of land to increase its value, which include landscaping, paving, and installing utilities.