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:

Bailment

The act of temporarily transferring possession but not ownership of personal property to another person under a contract.

Consideration

The value (which can be a promise, an act, or an object) exchanged between parties in a contract.

Voluntary Transfer

The act of willingly transferring ownership or interest in an asset from one party to another without coercion.

Conveyance

The act of transferring ownership of property from one party to another, often involving real estate.