Which of the Following Is True of an Effective Accounting

question 88

Multiple Choice

Which of the following is true of an effective accounting information system?

• A)It has little influence in improving a company's internal control activities.
• B)The cost of using an accounting information system is the same for both small and large businesses.
• C)A compatible accounting information system works smoothly with the business's employees and organizational structure.
• D)Large private companies prefer a manual accounting information system since their financial statements are not audited.

---

Definitions:

Obligor's Performance

The execution of duties or fulfillment of obligations by the party (obligor) that is bound by a contractual agreement to provide a service, payment, or benefit to another party.

Life Insurance

A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.

Proceeds

The amount of money or assets received from a transaction, sale, or event.

Beneficiary

An individual or entity entitled to benefits or proceeds from an insurance policy, trust, will, or other contracts.