The Principle of an Efficient Accounting System That States That

question 79

Multiple Choice

The principle of an efficient accounting system that states that an accounting system should accommodate a variety of users is

• A) cost effectiveness.
• B) flexibility.
• C) useful output.
• D) implementation.

---

Definitions:

Real Actions

Legal procedures taken to determine the title to property, as opposed to personal claims against a person.

Accounting Actions

Activities or tasks performed by accountants or financial officers that relate to the process of recording, summarizing, and reporting financial transactions of a business.

Earnings Targets

Pre-determined goals for an organization's financial performance, often used to motivate and measure the effectiveness of management.

Debt Covenants

Agreements or clauses within a debt contract that impose certain conditions or restrictions on the borrowing party, aimed at protecting the lender.