Which of the Following Is a Benefit of Using a Computerized

question 74

Multiple Choice

Which of the following is a benefit of using a computerized accounting information system?

• A)The software can accurately measure the intrinsic value of the firm using the built-in simulation techniques.
• B)There is no need to review the financial statements for accuracy.
• C)The software is easy to use,thus no training or review is necessary.
• D)The software automatically transfers the amounts from the general ledger to the financial statements.

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Definitions:

Accumulate

To gather or collect over a period of time, often referring to interest, investments, or assets.

Quarterly Basis

A period or system where certain operations or calculations, such as financial reports or interest payments, are done every three months.

Compounded Monthly

Interest calculation method where interest earned is added to the principal so that, from that moment on, the interest that has been added also earns interest.

Equal Contributions

A setup where all participants in a financial arrangement contribute the same amount.