Name and Explain the Purpose of the Three Major Subsystems

question 39

Essay

Name and explain the purpose of the three major subsystems of the accounting information system (AIS):

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Definitions:

Capital Investment

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to boost its long-term revenue.

Qualitative Characteristic

A feature that defines or characterizes the quality of information in accounting and financial reporting, such as relevance or reliability.

Expected Value Analysis

A form of analysis that assigns likelihoods (probabilities) to various inputs, thus incorporating uncertainty directly into the output (answer).

Probabilities

A measure representing the likelihood or chance of certain events occurring, expressed as a number between 0 and 1.