An Accounting Information System Should Be Designed to Provide Information

question 44

Multiple Choice

An accounting information system should be designed to provide information that is useful. To be useful the information must be:

• A) qualitative rather than quantitative.
• B) unique and unavailable through other sources.
• C) historical in nature and not purport to predict the future.
• D) marginal between two alternatives.
• E) relevant, accurate, and timely.

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Definitions:

Registration Statement

A document submitted to the Securities and Exchange Commission (SEC) containing details about a company's financial status and operational plans, for approval to sell securities to the public.

Shelf Registrations

A regulatory provision that allows an issuer to register new securities without immediately selling them, facilitating future offerings.

Continuous Basis

A term indicating that an activity or action is conducted without interruption or cessation; ongoing.

Tender Offer

A public offer made by an individual, company, or group to purchase a large percentage of another company's shares or bonds at a specified price.