All of the following statements regarding internal control procedures are true except: ( )
A. Internal control procedures are designed to ensure reliable financial reports.
B. Internal control procedures are designed to safeguards company assets.
C. Internal control procedures include methods to achieve compliance with laws and regulation.
D. Internal control procedures are not affected by the cost-benefit principle.
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The control principle for accounting information systems requires that the: ( )
A. Benefits from an activity outweigh the costs of the activity.
B. System conforms to a company's activities, personnel, and structure.
C. System must have internal controls.
D. System adapts to changes in the company, business environment, and needs of decision makers.
Revenues are decreases in equity from a company's earning activities. ( )
Source documents provide evidence of business transactions and are the basis for accounting entries. ( )
Increases in liability accounts are recorded as credits. ( )
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