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.

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Definitions:

Price Index

A statistical measure that shows changes in the price level of a basket of goods and services over a period of time.

Ending Inventory

The sum value of merchandise on offer for sale upon the conclusion of an accounting term.

Retail Value

The price point at which goods are sold to consumers, typically set higher than the wholesale price to cover costs and generate profit.

Average Cost Retail Inventory Method

An inventory valuation method that determines the cost of ending inventory and cost of goods sold based on the average cost of all similar items in the inventory.