The accounting principle that prescribes an accounting information system to report useful, understandable, timely, and pertinent information for effective decision-making is the:
A) Control principle.
B) Compatibility principle.
C) Relevance principle.
D) Flexibility principle.
E) Cost-Benefit principle.

Question

Quizplus · Accepted Answer

The relevance principle prescribes that the accounting information system should report information that is useful and pertinent for effective decision-making. Information should also be timely, meaning it should be available when it is needed. This principle helps to ensure that decision-makers have access to relevant and up-to-date information that can assist them in making informed decisions.

The Accounting Principle That Prescribes an Accounting Information System to Report