The accounting principle that prescribes an accounting information system conform with a company's activities, personnel, and structure is the:
A) Control principle.
B) Compatibility principle.
C) Relevance principle.
D) Flexibility principle.
E) Cost-Benefit principle.

Question

Quizplus · Accepted Answer

The compatibility principle prescribes that an accounting information system should conform with a company's activities, personnel, and structure. This means that the system should be designed in a way that is compatible with the organization's business processes, the skills and knowledge of its personnel, as well as its organizational structure. This ensures that the system is user-friendly, and that it can be easily understood and used by those who need it to carry out their duties. It also ensures that the system can be easily integrated into the organization's existing systems and processes, avoiding disruptions and other problems.

The Accounting Principle That Prescribes an Accounting Information System Conform