The Five Basic Principles of Accounting Information Systems Are Control

question 101

True/False

The five basic principles of accounting information systems are control, competency, compatibility, flexibility and cost-benefit.

---

Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach in order to assess the relative value of the currencies.

Price Level

The price level is the average of current prices across the entire spectrum of goods and services produced in the economy, often used as a measure of inflation.

Exchange Rate

The monetary value of one currency when exchanged for another.

Gold Standard

An arrangement whereby the currencies of most countries are convertible into gold at a fixed rate.