An Accounting Information System Is Said to Have Good Flexibility,if

question 65

Multiple Choice

An accounting information system is said to have good flexibility,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) accommodates changes in the business over time

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Definitions:

Net Pay

The amount of money an employee receives after all deductions, such as taxes and retirement contributions, have been subtracted from their gross pay.

Allowances

Reductions from the list price of goods or services, granted for various reasons such as defects or customer dissatisfaction.

Wage Base Limit

The maximum amount of income on which employees are required to pay certain taxes, such as social security taxes.

SUTA

The State Unemployment Tax Act, which mandates employers to pay state unemployment taxes to fund the unemployment compensation programs for workers in their state.