An effective accounting information system that provides relevant information:
A)will increase the likelihood of fraud and errors.
B)reduces the cost of employing an accounting information system.
C)improves decision making and reduces uncertainty.
D)should be manual to improve the accuracy of data entry.

Question

Quizplus · Accepted Answer

An accounting information system that provides relevant information will improve decision making by reducing uncertainty, making it easier for managers to make informed decisions. Choice A is false because a well-designed accounting information system helps to detect and prevent errors and fraud. Choice B is incorrect because while an effective accounting information system can help to reduce costs in the long run, the initial implementation and maintenance costs may be high. Choice D is incorrect because a manual accounting system is more prone to errors than a computer-based system.

An Effective Accounting Information System That Provides Relevant Information