The Five Fundamental Principles of Accounting Information Systems Are

question 131

Multiple Choice

The five fundamental principles of accounting information systems are:

• A)Control,accountability,relevance,compatibility,and flexibility.
• B)Control,relevance,compatibility,flexibility,and cost-benefit.
• C)Control,relevance,compatibility,flexibility,and safety.
• D)Control,relevance,compatibility,timeliness,and cost-benefit.
• E)Historical cost,relevance,compatibility,flexibility,and cost-benefit.

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Definitions:

Debt Agreement

A formal arrangement between a debtor and creditors which outlines the terms of debt repayment.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with predetermined dividends.

Debt Instrument

A written obligation to repay borrowed funds or debts under defined terms, such as bonds, notes, or mortgages.