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What are the two factors that must be considered when deciding on an accounting system?
What are the two factors that must be considered when deciding on an accounting system?
Expert Solution
Answer:
The two factors adopted are
- the organization's size and
- the information demands of the organization.
Step-by-step explanation
- How big is the organization - Accounting software are designed to attend different-sized organizations commonly estimated in sales revenue.
- The information demanded - Before choosing an accounting system, an establishment must ascertain its accounting needs. Some companies simply require a check register's equivalent, which affords easy tracking of expense codes. Other organizations need more than a check register as they may necessitate a system that can generate invoices, process payroll, and tail inventory.
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