An Accounting Information System Is Said to Have Good Control

question 56

Multiple Choice

An accounting information system is said to have good control characteristics if it:

• A)works smoothly with the business's employees and organizational structure.
• B)safeguards a business's assets and reduces the likelihood of fraud and errors.
• C)provides information that will improve decision making and reduce uncertainty.
• D)can accommodate changes in the business over time.

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Definitions:

Proprietary Income

refers to income or profit earned by business owners from their ownership stakes, distinct from wages earned through employment.

Public Utilities

Companies that provide essential services such as water, electricity, and gas to the public and are often regulated by the government.

State Lotteries

Government-run gambling operations where participants buy tickets for a chance to win cash prizes, often used to raise funds for public services.

Federal Tax Revenue

The income received by the federal government from taxes imposed on individuals, businesses, and other entities, used to fund government operations and public services.