Which of the Following Statements About Accounting Information Systems Is

question 2

Multiple Choice

Which of the following statements about accounting information systems is most true?

• A) They transform data into information.
• B) They transform information into data.
• C) They transform data into decisions.
• D) They transform information into decisions.

---

Definitions:

Capital Budgeting Techniques

Methods used to evaluate and prioritize investment projects or expenditures, such as NPV, IRR, Payback Period, and Profitability Index.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and size within their industry.

Internal Rate of Return (IRR)

A financial metric used to estimate the profitability of potential investments.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.