AIS can be linked to other areas of study in accounting by focusing on the five generic elements of the AIS.Which of the following pairs a generic element of the AIS with a specific example from financial accounting?
A)Bank reconciliation, internal control
B)Adjusting entries, output
C)Financial statements, storage
D)FASB Conceptual Framework, input

Question

Quizplus · Accepted Answer

Bank reconciliation is a generic element of AIS that relates to internal control in financial accounting. Bank reconciliation is necessary to ensure that the cash balance reported in the financial statements is reconciled with the cash balance in the company's bank account, which helps to ensure the accuracy of financial reporting. Internal control is important in financial accounting to ensure that the financial statements are reliable and trustworthy. Therefore, choice A is the best answer. B, C, and D do not provide a correct pairing of a generic element of AIS with a specific example from financial accounting.

AIS Can Be Linked to Other Areas of Study in Accounting