The Control Principle for Accounting Information Systems Requires That The

question 116

Multiple Choice

The control principle for accounting information systems requires that the:

• A) Benefits from an activity outweigh the costs of the activity.
• B) System report useful, understandable, timely, and pertinent information for effective decision making.
• C) System must have internal controls.
• D) System adapts to changes in the company, business environment, and needs of decision makers.
• E) System conforms to a company's activities, personnel, and structure.

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Definitions:

Understated

Describes an amount reported lower than it actually is, either in financial statements or any other reporting context.

Overstated

Refers to financial statements or figures being reported as more than their actual or true value.