3 Basic principles of accounting information system

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 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 useful 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.

Principles of accounting information system

Principles of accounting information system

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