Which of the following is true of an effective accounting information system?
A)It has little influence in improving a company's internal control activities.
B)The cost of using an accounting information system is the same for both small and large businesses.
C)A compatible accounting information system works smoothly with the business's employees and organizational structure.
D)Large private companies prefer a manual accounting information system since their financial statements are not audited.

Question

Quizplus · Accepted Answer

A compatible accounting information system is one that works smoothly with the business's employees and organizational structure, making it easier for them to use and ultimately increasing its effectiveness. Option A is incorrect as an effective accounting information system can greatly improve a company's internal control activities. Option B is incorrect as the cost of using an accounting information system can vary based on the size and complexity of the business. Option D is incorrect as even large private companies prefer to use automated accounting information systems as they provide greater accuracy and efficiency in financial reporting.

Which of the Following Is True of an Effective Accounting