The accounting principle that requires an accounting information system to report useful, understandable, timely, and pertinent...

The accounting principle that requires an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the:

Select one:

a. Control principle.

b. Compatibility principle.

c. Relevance principle.

d. Flexibility principle.

e. Cost-Benefit principle.

Solutions

Expert Solution

Answer- The accounting principle that requires an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the = Relevance principle (Option c).

Explanation- The five fundamental principles of accounting information systems are as follows-

1)- Control principal- The control principle for accounting information systems requires that the System must have internal controls.

2)- Relevance principal- The accounting principle that requires an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the relevance principle.

3)- Flexibility principal- The flexibility principle of accounting information systems prescribes that the system be able to adapt to changes in the company, business environment, and needs of decision makers.

4)- Compatibility principal

5)- Cost-benefit principal

ekkarill92 answered 1 year ago

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