Control Principle:
The Control principle requires the
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
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.
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Chapter 7 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
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