HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter B, Problem 1QC
To determine
To find: The benefits of effective accounting information system
Expert Solution & Answer
Answer to Problem 1QC
Compatibility
Explanation of Solution
Explanation for incorrect answer:
- Option a is incorrect as flexibility is about where organization manages with unexpected changes in the business activities along the passage of time.
- Option b is incorrect as accounting information system provides relevant information towards effective decision making. This help to reduce the future uncertainties.
- Option d is incorrect as compatibility develops harmony between the employees and organizational structure.
Explanation for correct answer:
- Option a is correct as the
control system helps the accounting process towards preventing accounting data from frauds and errors.
Conclusion
Hence, the correct answer is option c.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Which of the following would assist an entity in cat and prevent fraud? a. Accounting reconciliations b. Segregation of duties c. All the options d. Performance reviews
Which of the following is NOT one of the purposes of internal control?
a.
to guarantee the success of the business
b.
to safeguard the entity’s assets and resources
c.
to deter errors, fraud, and theft
d.
to ensure the accuracy and completeness of the accounting data
Which of the following are correct regarding why management uses internal controls? (Check all that apply.)
Multiple select question.
Protect assets.
Uphold company policies.
Ensure reliable accounting.
Reduce vendor payables.
Increase revenues.
Promote efficient operations.
Chapter B Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. B - Prob. 1QCCh. B - Prob. 2QCCh. B - Prob. 3QCCh. B - Prob. 4QCCh. B - Prob. 5QCCh. B - Centex Sound Systems purchased merchandise...Ch. B - Every transaction recorded in the cash payments...Ch. B - Prob. 8QCCh. B - Prob. 9QCCh. B - What is an accounting information system (AIS)?
Ch. B - Prob. 2RQCh. B - Explain the three basic components of an...Ch. B - Prob. 4RQCh. B - What is the purpose of a subsidiary ledger?Ch. B - Prob. 6RQCh. B - List the four special journals often used in a...Ch. B - Explain the posting process of the sales journal.Ch. B - Provide some examples of transactions that would...Ch. B - Explain the posting process of the cash payments...Ch. B - When is the general journal used in a manual...Ch. B - Prob. 14RQCh. B - Prob. 15RQCh. B - Prob. 16RQCh. B - How would a business record a sale of services on...Ch. B - Prob. 18RQCh. B - Evaluating features of an effective accounting...Ch. B - Prob. B.2SECh. B - Identifying special journals Use the following...
Knowledge Booster
Similar questions
- Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.arrow_forwardWhich of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.arrow_forwardAn internal control system is made up of all rules and processes that are used to safeguard assets, assure accurate accounting, improve efficiency, and enforce compliance with business standards. Are you in agreement or disagreement with this assertion? How come or why not?arrow_forward
- Which one of the following is not an objective of a system of internal controls? Select one: 1. Overstate liabilities in order to be conservative 2. Enhance the accuracy and reliability of accounting records 3. Safeguard company assets 4. Reduce the risks of errorsarrow_forwardDistinguish between business failure and audit risk. Why is businessfailure a concern to auditors?arrow_forwardThe importance of internal control is to protect against all of the following EXCEPT integrity of assets reliable accounting information financial reporting ownerarrow_forward
- The use of a bank account addresses which objective of internal control? Group of answer choices safeguard assets ensure reliability of accounting data promote operational efficiency encourage adherence to prescribed managerial policiesarrow_forwardf Which of the following is NOT part of the methodology used in designing substantive tests of account balances? Select one: a. Assess control risk. O b. Design and perform analytical procedures. Oc. Assess inherent risk. Od. Assess client business risks.arrow_forwardProviding timely information about transactions in sufficient detail to permit proper classification and financial reporting is an example of a. the control environment. b. risk assessment. c. information and communication. d. monitoring.arrow_forward
- Which of the following is not a purpose of internal controls? Guarantee profits Protect assets Adherence to company policies Make fraud more difficult Accurate accounting recordsarrow_forwardUsing the following table as a guide, describe for each function (see Figure 11.1): A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Marketing Finance Billing AR (debit) Sales (credit) Collections Cash (debit) AR (credit)arrow_forwardWhich one of the following is not an advantage of internal controls? Select one: a. It safeguards the assets b. It increases the chance of fraud c. It ensures compliance with laws d. It enhances the reliability of accounting recordsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning