Johnson Products is a small manufacturing firm specializing in custom-order tool and die work. A computerized accounting system would help Johnson Products by:
A) making key accounting and financial decisions.
B) helping management identify cash flow and other financial difficulties more quickly.
C) eliminating the need to prepare financial statements and other reports.
D) eliminating the need to perform the three middle steps of the accounting cycle.

Question

Quizplus · Accepted Answer

A computerized accounting system would help Johnson Products by helping management identify cash flow and other financial difficulties more quickly. While a computerized accounting system may assist in making key accounting and financial decisions, it would not eliminate the need to prepare financial statements and other reports, nor would it eliminate the need to perform the three middle steps of the accounting cycle.

Johnson Products Is a Small Manufacturing Firm Specializing in Custom-Order