Accounting Cost Benefit Principle

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Accounting Cost Benefit Principle1. All of the following statements regarding internal control procedures are true except: Internal controlprocedures are designed to ensure reliable financial reports. Internal control procedures are designed tosafeguards company assets. Internal control procedures direct operations toward common goals.Internal control procedures include methods to achieve compliance with laws and regulation.Internalcontrol procedures are not affected by the cost-benefit principle.2. The control principle for accounting information systems requires that the: Benefits from an activityoutweigh the costs of the activity. System report useful, understandable, timely, and pertinentinformation for effective decision making.System must have internal controls. System adapts tochanges in the company, business environment, and needs of decision makers. System conforms to acompany's activities, personnel, and structure.3. The basic components of an accounting information system include all of the following except:Source documents.Warehouses,Information processors. Information storage. Input devices. ?4. Information processors: Include information storage. Interpret, transform, and summarizeinformation for use in analysis and reporting. Are components of an accounting system that keep datain accessibleform?Are the means to take information out of an accounting system and make it availabletousers?Include scanners.5. An accounts payable ledger is:A subsidiary ledger that contains an account for each supplier(creditor). A list of the balances of all the accounts in the accounts receivable ledger that is added toshow the total amount of accounts receivable outstanding. A book of original entry that is designed andused for recording only a specific type of transaction. The ledger that contains the financial statementaccounts of a business. A subsidiary ledger that contains a separate account for each party that grantsboth short-term and long-term credit on account to the company.6. The use of an Accounts Payable controlling account: Reduces the number of accounts in thesubsidiary ledger. Reduces the total number of accounts maintained. Reduces the number of entries inthe general journals.Reduces the number of accounts in the general ledger. Increases the number ofcolumns in the journals.7. Enterprise-resource planning software:Refers to programs that help manage a company's vitaloperations. Is another name for spreadsheetprograms?Uses batch processing of business information.Is substantially declining in use. Is another name for databaseprograms?8. A business segment: Requires only internal reporting.Is a part of a company that is separatelyidentified by its products, services, or geographicmarket?Requires special journals. Requiressubsidiary ledgers. Cannot report its results separately.

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