Question : 126.Identify the accounting information system principle indicated in letters a-e : 1236967

126.Identify the accounting information system principle indicated in letters a-e that applies to each of the situations below by entering the appropriate letter next to the statement.   

1. International Company’s accounting information system can be improved markedly for a cost of about $10,000,000 and the company intends to complete the upgrade because the benefits outweigh this cost.              Flexibility             

2. International Company has world-wide operations that must handle thousands of different products, so the accounting information system is fairly complex to conform to its activities, personnel, and structure.              Compatibility             

3. International Company has designed its accounting information system so that key managers can obtain the information they need to make decisions relating to new products, sales, and controlling costs.              Control             

4. International Company’s accounting information system has policies to ensure that financial reports will be reliable, assets are safeguarded, and relevant laws and regulations are complied with.              Cost-benefit             

5. International Company has designed its accounting information system to be adaptable to changes in technology, the business environment, and the needs of decision makers.              Relevance             

127.Enter the letter of the following terms on the line next to the appropriate definition of each.   

1. The component of an accounting system that is the means to take information from an accounting system and make it available to users.              Accounting information system             

2. The means of collecting and processing data from transactions and events, organizing them into useful reports, and communicating results to decision makers.              Purchases journal             

3. A record of the separate accounts of each supplier that supports its general ledger controlling account.              Cash receipts journal             

4. The component of an accounting system that keeps data in a form accessible to information processors.              Control principle             

5. The special journal used to record all receipts of cash.Relevance principle

6. The special journal that is used to record all cash payments.Information storage

7. The component of an accounting system that captures source document information and enables its transfer to the information processor.              Cash disbursements journal             

8. An information system principle that prescribes that an accounting system have methods and procedures allowing managers to control and monitor business activities.              Accounts payable ledger             

9. The special journal used to record all purchases made on account.Output devices

10. An information system principle requiring that an accounting system report useful, understandable, timely, and pertinent information for decision making.              Input devices