In Comparing Computerised and Manual Accounting Systems the Correct Statement

question 16

Multiple Choice

In comparing computerised and manual accounting systems the correct statement is:

• A)A computerised system does not require any reversing entries
• B)In computerised systems the use of journals is less important than in a manual system
• C)Errors are easier to find in a computerised accounting system
• D)A worksheet for adjustments is still often prepared when a computerised system is used

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Net Cash Flow

The amount of cash generated or lost over a specific period, considering cash inflows and outflows.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value due to wear and tear.