Which of the Following Accounting Principles Prescribes That an Accounting

question 170

Multiple Choice

Which of the following accounting principles prescribes that an accounting information system report useful, understandable, timely, and pertinent information for effective decision-making?

• A) Flexibility principle.
• B) Relevance principle.
• C) Compatibility principle.
• D) Cost-Benefit principle.
• E) Control principle.

---

Definitions:

Employers

Employers are individuals or organizations that hire and pay people to perform specific jobs.

Workers

Individuals engaged in any form of labor, whether employed by organizations, self-employed, or working as freelancers, contributing to the production of goods and services.

Producer Surplus

The difference between the amount a producer is paid for a good compared to the minimum amount they would be willing to accept for it, a measure of producer welfare.

Price

The sum of money needed to buy a product, service, or commodity.