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.
You May Like Also:
- Accounting as a career/profession
- The concepts / Assumptions / Principles of accounting
- The Modifying Accounting Conventions
- Difference between bookkeeping and accounting
- Steps in the accounting process
- Difference between account and accounting
- Some Core Concepts of Accounting
- Functions of Accounting
- What is the Definition of Accounting?