Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 7

Enter the letter of each system principle in the blank next to its best description.
A. Control principle D. Flexibility principle
B. Relevance principle E. Cost-benefit principle
C. Compatibility principle
_________ 1. The principle prescribes the accounting information system to help monitor activities.
_________ 2. The principle prescribes the accounting information system to adapt to the unique characteristics of the company.
_________ 3. The principle prescribes the accounting information system to change in response to technological advances and competitive pressures.
_________ 4. The principle that affects all other accounting information system principles.
_________ 5. The principle prescribes the accounting information system to provide timely information for effective decision making.