All of the Following Statements Regarding Accounting Information Systems Are

question 39

Multiple Choice

All of the following statements regarding accounting information systems are except:

• A) Accounting information systems collect and process data from transactions and events.
• B) Accounting information systems organize data in useful forms.
• C) Accounting information systems do not establish internal control procedures.
• D) Accounting information systems are crucial to effective decision making.
• E) Accounting information systems communicate information to business decision makers.

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Definitions:

FICA

Refers to the Federal Insurance Contributions Act and represents taxes that are deducted to fund Social Security and Medicare programs in the United States.

Federal Income Taxes

Taxes imposed by the government on the annual income of individuals, corporations, trusts, and other legal entities.

State Income Taxes

Taxes levied by individual states on the income of individuals and businesses within their jurisdiction.

Payroll Taxes

Taxes that are withheld from employees' wages or paid by employers on behalf of their employees, typically including social security and medicare taxes.