3 Basic principles of accounting information system

There are three basic principles of accounting information systems 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 that must be used to be internal and external users. It helps the users to make 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 properly informative, flexible, and user-friendly.

Examples: Interim financial statements, additional accounting reports, etc.

Principles of accounting information system
Principles of accounting information system

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