Which of the Following Statements Is True Regarding Accounting Information

question 239

Multiple Choice

Which of the following statements is true regarding accounting information systems?

• A)Both large and small firms should use the same type of accounting system.
• B)All firms should have the same types of transactions.
• C)The volume of data to be handled should not vary between firms.
• D)The kind of information that management requires of an accounting system will vary,
• Depending on the type of firm.

---

Definitions:

Effective Rate

The actual interest rate of an investment or loan, taking into account the compounding of interest.

Effective Rate

The real rate of interest earned or paid on an investment or loan in a specified period, considering compounding.

Monthly Compounded

Refers to the process of adding interest to the principal sum of a loan or deposit, recalculated on a monthly basis. This is a repeat of Compounded Monthly with a new definition focusing on recalculating interest increase.

Compounded Monthly

Compounded monthly refers to the process where the interest earned on an investment is added to the principal sum each month, causing the principal amount to grow at an increasing rate.