Control Principle: The Control principle requires the accounting information system must have consistent procedure which monitors the business activities. Relevance Principle: The Relevance principle states that accounting information should be presented in a simple and understandable way on period basis which could be used for decision making purpose by the users. Basically, the accounting information should be useful and relevant for the user to make financial decision. Compatibility Principle: Compatibility principle states that the accounting information system must be compatible with the business structure and operations or activities. Flexibility Principle: The accounting information system must be flexible in nature which could change according to the changes in market, business environment , legal regulations and etc. Cost-Benefit Principle: The cost benefit principle simple states that the benefit from providing financial information should be more than the cost to the users. It has relative influence on the other principle of accounting information system. To determine : Match the principles of accounting information system with descriptions provided.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 2QS

To determine

Control Principle:

The Control principle requires the accounting information system must have consistent procedure which monitors the business activities.

Relevance Principle:

The Relevance principle states that accounting information should be presented in a simple and understandable way on period basis which could be used for decision making purpose by the users. Basically, the accounting information should be useful and relevant for the user to make financial decision.

Compatibility Principle:

Compatibility principle states that the accounting information system must be compatible with the business structure and operations or activities.

Flexibility Principle:

The accounting information system must be flexible in nature which could change according to the changes in market, business environment, legal regulations and etc.

Cost-Benefit Principle:

The cost benefit principle simple states that the benefit from providing financial information should be more than the cost to the users. It has relative influence on the other principle of accounting information system.

To determine:

Match the principles of accounting information system with descriptions provided.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please give me help this question. Financial accounting

Solve this question prop

The audited accounts of Lindsay Co. for year-end August 31, 2014 show a profit of $3,115,000 after charging the following: Depreciation 430,000 Rent 175,000 Legal fees 1,350,000 Audit fees 88,000 Donations 119,000 Bad debts 242,000 Foreign Travel 395,750 Interest payments 62,375 Other Information: Legal fees are as follows: Expenses in respect of recovery of debts, $585,000 Expenses related to the increase private share capital, $765,000 Lindsay Co. donated $65,500 to UTECH University and $53,500 to HELP, a private charity registered under the Charities Act. Bad debts are as follows: A loan of $76,130 to Derek Stan who failed to repayit. $63,017, owed by Simplicity Ltd. which was declared bankrupt. The balance is a percentage of receivables at year end which is deemed to be bad. Foreign travel expense included $268,210 for a vacation package for the marketing manager’s and his family plane tickets. The remaining amount was for a business trip to meet with potential suppliers.…