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:

Strong Form Efficiency

A theory that states all information, both public and private, is completely reflected in the prices of stocks, making it impossible to beat the market consistently through expert stock selection or market timing.

Semi-strong Form Efficiency

A theory in financial economics that implies all public information is already calculated into stock prices, meaning future price movements cannot be predicted using only public information.

Financial Markets

Financial markets are marketplaces where individuals and entities can trade securities, commodities, and other financial instruments in order to facilitate funding, investing, and risk management.

Advantage

The benefit or edge that a person, organization, or situation has over another.