Identify the Accounting Information System Principle Below That Applies to Each

question 25

Short Answer

Identify the accounting information system principle below that applies to each of these situations
A. Flexibily
B Compatiblity
C. Control
D. Cost-benefit
F. Relevance
$\underline{\quad\quad}$ 1. Global Company has designed therr accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales and controlling costs
$\underline{\quad\quad}$ 2. Global Company's accounting information system has policies to ensure that financial statements will be reliable, assets are protected and relevant laws and regulations are complied with
$\underline{\quad\quad}$ 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
$\underline{\quad\quad}$ 4. Global Company has world-wide operations that must handle several thousand different products, so the accounting information system is fairly complex, encompassing marketing and manufacturing
$\underline{\quad\quad}$ 5. Global Company has designed their accounting
information system to be adaptable to changes in technology, the business environment the needs of decision makers

Understand the implications and applications of the Uniform Transfers to Minors Act.

Analyze the legal consequences of actions taken with bailed items, including losses and damages.

Examine the legal principles governing conditional gifts and their completion or revocation.

Understand the roles of caspases in cellular processes.

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Definitions:

Coupon Rate

A bond's annual yield rate, represented as a percentage of its par value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often expressed in years.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in reference to bonds.

Immunization

A strategy used in fixed income to shield a portfolio from interest rate fluctuations by aligning the durations of assets and liabilities.