Which of the following best addresses the risk of data-centric modern accounting systems?Select answer from the options belowutilization of a coding system in the chart of accountsgenerally accepted accounting principlesinternal controls over financial reportinghaving a single ledger maintained by one party

Principles of Coding in Accounting

Which of these is not one of the key qualities of accounting information? Group of answer choicesRelevanceTimelinessControlReliability

Which one of the following is not an objective of a system of internal controls?Group of answer choicesEnhance the accuracy and reliability of accounting recordsOverstate liabilities in order to be conservativeReduce the risks of errorsSafeguard company assets

Accounting information is considered to be relevant when itGroup of answer choicesCan be depended on to represent the economic conditions and events that it is intended to represent.Is capable of making a difference in a decisionIn understandable by reasonably informed users of accounting informationIs verifiable and neutral

Accounting SystemsThere are five questions associated with this passagePeople typically use two types of accounting systems: a cash-based system and an accrual system. Several things need to be considered when choosing an accounting system. The two most important considerations are ease of use and need for accuracy.In a cash-based system, which is easy to use, you record transactions when the money is actually paid or received.An accrual accounting system is more difficult to understand, but it is more accurate than a cash-based system. In an accrual system, a transaction is recorded when you receive or provide a product or service, not when you pay or receive payment for the product or service.Assume you provided a service to a customer for $1,000 in May and received payment for it in June. You also purchased and received a $2,000 piece of equipment in May and paid for it in June.Under an accrual accounting system, in May you would record both the $1,000 for the service performed and the $2,000 for the equipment purchased. Under a cash-based system, in June you would record both the $1,000 payment received and the $2,000 payment made.The cash-based accounting system would give you an incorrect picture of your true financial status in May. It would appear that you had $1,000 more in cash than you actually did. Therefore, an accrual accounting system would provide a more accurate picture of how you are doing financially at any given point in time.What is the best reason to use an accrual accounting system?It is easy to use.It is easy to understand.It shows your real financial status.It is used by most people.It requires minimal effort.