The Accounting Principle That Requires an Accounting Information System to Report

question 117

Multiple Choice

The accounting principle that requires an accounting information system to report useful,understandable,timely and pertinent information for effective decision-making is the:

• A)Control principle
• B)Compatibility principle
• C)Relevance principle
• D)Flexibility principle
• E)Cost-Benefit principle

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Definitions:

Limited Partnership

A business structure where at least one partner has unlimited liability and one or more partners have limited liability, limiting their personal risk.

Capital Contributed

The total amount of money and other valuables that shareholders or owners have invested in a company or partnership.

Full Responsibility

Full Responsibility implies taking complete accountability for one's actions or the outcomes of those actions, without excuses or shifting blame.

Limited Partnership

A business structure where some owners are general partners responsible for the day-to-day operations, while others are limited partners investing but not involved in management.