An Effective Accounting Information System That Provides Relevant Information

question 49

Multiple Choice

An effective accounting information system that provides relevant information:

• A)will increase the likelihood of fraud and errors.
• B)reduces the cost of employing an accounting information system.
• C)improves decision making and reduces uncertainty.
• D)should be manual to improve the accuracy of data entry.

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Definitions:

Compounded Quarterly

Interest on an investment is calculated and added to the principal sum every three months.

Total Amount

The complete sum or quantity of money or measure when everything is added together.

Payments

Transactions made by a borrower to a lender to repay a loan or to a seller for goods or services.

Compounded Monthly

Describes the frequency at which interest is calculated and added to the principal balance of an investment or loan each month.