There are three basic principles of accounting information system they are cost-effectiveness, useful output, and flexibility. This three basic principles of accounting information system with an example are as follows:
Principles of accounting information system
Cost-effectiveness: It follows cost must be lower than benefit and it should be effective to take a just-in-time decision. It has also a quality of cost informative.
Useful output: It follows the accounting data must be used to be internal and external users. It helps the users to take a decision based on accounting information.
Examples: Financial reports, accounting data etc.
Flexibility: It follows accounting information must be flexible to face various financial environment and time. Accounting information should be proper informative, flexible, and user-friendly.
Examples: Interim financial statements, additional accounting reports etc.
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