The Control Principle for Accounting Information Systems Requires That The

question 112

Multiple Choice

The control principle for accounting information systems requires that the:

• A)Benefits from an activity outweigh the costs of the activity.
• B)System report useful,understandable,timely,and pertinent information for effective decision making.
• C)System must have methods and procedures allowing managers to control and monitor business activities.
• D)System be able to adjust to changes in the company,business environment,and needs of decision makers.
• E)System conforms to a company's activities,personnel,and structure.

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Definitions:

Interest Value

The amount of income earned from an investment, typically expressed as a percentage of the principal.

Face Value

The nominal or dollar value printed on a security or a financial instrument, such as a bond or stock, representing its legal value.

Maturity Value

The amount to be received at the maturity date of an investment, typically the principal plus interest.

Note Duration

The term or length of time until a promissory note, bond, or other financial instrument reaches its maturity date.