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:

Revaluation

The adjustment of the book value of a currency, asset, or liability to reflect its current market value.

Monetary Investments

assets and financial investments such as cash, stocks, bonds, and other instruments that can be easily converted into cash.

Private Companies

Companies that do not have publicly traded shares and are typically owned by a small group of investors, often including the founders and family members.

User Groups

Communities or forums where users of a specific product or service share information and feedback.