Identify the Accounting Information System Principle Below That Applies to Each

question 41

Short Answer

Identify the accounting information system principle below that applies to each of these situations:
A. Flexibility
B. Compatibility
C. Control
D. Cost-benefit
E. Relevance
$\underline{\quad\quad\quad\quad\quad}$ 1. Global Company has designed its accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales, and controlling costs
$\underline{\quad\quad\quad\quad\quad}$ 2. Global Company's accounting information system has policies to ensure that financial statements are reliable, assets are protected, and relevant laws and regulations are complied with.
$\underline{\quad\quad\quad\quad\quad}$ 3. Global Company's accounting information system can be improved markedly for a cost of about $\$ 30,000,000$ . However, the incremental benefits from such improvements are not expected to outweigh this cost.
$\underline{\quad\quad\quad\quad\quad}$ 4. Global Company has worldwide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing.
$\underline{\quad\quad\quad\quad\quad}$ 5. Global Company has designed its accounting information system to be adaptable to changes in technology, the business environment, and the needs of decision makers

Understand the role of an agent and principal in the context of negotiable instruments and the liability implications.

Recognize the requirements for ratification of unauthorized actions and the impact of such actions on liability.

Understand the effects of alterations and forgeries on the liability of parties to a negotiable instrument.

Comprehend the application of warranty liability in the transfer of negotiable instruments.