Principles of an Efficient and Effective Accounting Information System Include

question 50

Multiple Choice

Principles of an efficient and effective accounting information system include all of the following except

• A) cost effectiveness.
• B) flexibility.
• C) useful output.
• D) All of these answer choices are principles.

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Definitions:

Deferred Gain

A profit from the sale of property or an investment that has been realized but not recognized for tax purposes in the current period.

IRC Section 121

A provision in the Internal Revenue Code that allows homeowners to exclude up to $250,000 ($500,000 if married filing jointly) of capital gains on the sale of their primary residence, subject to certain conditions.

Receipt of Boot

Tax term referring to non-like-kind property or cash received in an exchange, which may trigger taxable gain.

Like-kind Exchange

A tax-deferred exchange of similar properties under section 1031 of the U.S. Tax Code.