An Accounting Information System Is Said to Be Relevant,if It

question 3

Multiple Choice

An accounting information system is said to be relevant,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:

Non-cash Charges

Expenses reported on the income statement that do not involve a direct cash outflow, such as depreciation or amortization.

Direct Materials Budget

A financial plan that estimates the cost of raw materials required for production.

Beginning Inventory

The value of goods available for sale or use at the start of an accounting period, carried over from the end of the previous period.

Budgets

Financial plans that estimate revenue and expenditures over a specific time period.