The Flexibility Principle Prescribes That an Accounting Information System Be

question 20

True/False

The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.

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Definitions:

Effective Yield

Effective yield is the total yield on an investment, taking into account the effects of compounding interest or reinvestment over a given period.

Maturity Date

The date on which a financial obligation must be repaid in full.

Present Discounted Value

The present worth of a future amount of money or series of cash inflows, discounted at a given rate of return.

Interest Rate

The cost of borrowing money or the payment made for the use of money, typically expressed as a percentage of the principal amount annually.