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

question 78

Multiple Choice

An accounting information system is said to have good compatibility,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

---

Definitions:

Short-Term Financial Plan

A strategic plan that outlines a company's financial activities and strategies for a short period, typically one year or less, to ensure liquidity and manage cash flows efficiently.

Loan Period

The duration of time from the beginning of a loan until it is fully repaid.

Cumulative Cash Surplus

Cumulative Cash Surplus represents the total amount of cash that exceeds the expenses over a period, indicating a company's financial health and ability to finance its operations.