Question 1

The transformation of data into a form useful for a specific purpose is called
A) MIS.
B) data processing.
C) transactions.
D) information processing.
E) implementation.

Accepted Answer

The process of transforming raw data into a form useful for a specific purpose is called data processing. It involves activities such as data collection, data cleaning, data transformation, data storage, and data analysis. The end goal of data processing is to generate meaningful insights and decision-ready information that can support business operations and strategic decision-making.

Question 2

Most data gathered for an MIS come from
A) customers.
B) bankers.
C) external sources.
D) internal sources.
E) information obtained from data firms.

Accepted Answer

The most common source of data for an MIS is internal sources, meaning data that is collected and generated from within the organization itself. This includes things like sales data, inventory information, employee records, and financial statements. While data may also be obtained from external sources or data firms, internal sources are typically the most reliable and comprehensive.

Question 3

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."
A) body
B) conclusion
C) analysis
D) recommendations
E) introduction

Accepted Answer

The answer of The following quotation would most likely be...

Question 4

____ is a firm's procedures for generating, using, and sharing the data and information contained in the firm's database.
A) MIS
B) KM
C) IT
D) CPA
E) GAAP

Accepted Answer

KM (Knowledge Management) involves procedures for generating, using, and sharing data and information within a firm's database.

Question 5

Operations managers need management information in all of the following areas except
A) the cost of production.
B) current inventory levels.
C) availability of resources.
D) future capitalization needs.
E) present and future sales levels.

Accepted Answer

While operations managers may be involved in planning for future capitalization needs, this information is typically more relevant to financial managers or executives. Operations managers primarily focus on managing resources and production processes in the present to meet current and future demand. Therefore, they need information on the cost of production, inventory levels, availability of resources, and present/future sales levels to make informed decisions about operations management.

Question 6

From an executive's viewpoint, which of the following statements does not describe an executive's motivation to "cook" a firm's books?
A) The desire to look good in the local newspapers or financial publications
B) The desire to impress Wall Street analysts
C) The desire to impress the firm's investors
D) The desire to be ethical
E) The desire to inflate the company's stock value

Accepted Answer

An executive who wants to "cook" a firm's books would not be motivated by the desire to be ethical. The other answer choices are all potential motivations for executives to manipulate financial statements.

Question 7

Which type of manager would be most concerned with information about the products offered by competitors?
A) Financial
B) Marketing
C) Operations
D) Administrative
E) Human resources

Accepted Answer

Marketing managers are responsible for studying and analyzing the market in which their company operates. This includes gathering information about competitors and their products to develop strategic plans for their own products. Financial managers are primarily concerned with financial data, operations managers focus on improving processes and efficiency, administrative managers handle administrative tasks, and human resources managers are responsible for staffing, training, and employee relations.

Question 8

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.
A) a manager awareness program
B) a management information system
C) entrepreneurial information software
D) a computer information program
E) a desktop information system

Accepted Answer

The description matches the purpose of a management information system (MIS), which is to gather, organize, analyze, and distribute relevant and timely information to support managerial decision-making processes. The other options may have overlaps with MIS, but none of them explicitly states the purpose described in the question.

Question 9

An audit is
A) performed by the firm's private bookkeepers.
B) not necessary if the firm used generally accepted bookkeeping procedures.
C) required by many bankers and lenders who are trying to validate a firm's accounting statements.
D) a waste of the firm's resources.
E) a guarantee that a firm hasn't "cooked" the books.

Accepted Answer

A firm's audit is required by many bankers and lenders who are trying to validate the firm's accounting statements. This is because the audit provides an objective evaluation of the accuracy and completeness of a firm's financial statements, which can give lenders greater confidence in the firm's ability to repay loans. While an audit is not necessarily required by law, it is often seen as a best practice for maintaining the integrity of a firm's financial reporting.

Question 10

A measure that summarizes a particular characteristic of a group of numbers is called a(n)
A) array.
B) statistic.
C) asset.
D) data point.
E) liability.

Accepted Answer

A statistic is a measure that is derived from a set of numerical data and is used to describe some characteristic of the data. An array is simply a list of numbers, a data point refers to a single value within a dataset, and assets and liabilities are terms used in accounting and finance. Therefore, the best choice is B) statistic.

Question 11

Which of the following is not one of the sections included in a typical business report?
A) Recommendations
B) Body
C) Introduction
D) Analysis
E) Conclusions

Accepted Answer

The "Analysis" section is typically part of the "Body" of a business report, not a separate section.

Question 12

The process of systematically collecting, analyzing, and reporting financial information is called
A) accounting.
B) bookkeeping.
C) auditing.
D) journalizing.
E) revenues.

Accepted Answer

Accounting is the process of collecting, analyzing, and reporting financial information. Bookkeeping involves recording financial transactions, auditing involves reviewing financial information for accuracy and compliance, journalizing is the process of recording transactions in a journal, and revenues are a type of financial information that is collected and analyzed in accounting.

Question 13

When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements
A) verified.
B) audited.
C) affirmed.
D) certified.
E) insured.

Accepted Answer

The bank is requiring Nathan to have his financial statements audited, which involves a thorough examination and verification of the financial information by a CPA. This is a higher level of assurance than verification, affirmation, certification, or insurance.

Question 14

The purpose of an audit is to ensure that financial statements have been prepared according to
A) the particular company's standards.
B) the industry's standards.
C) generally accepted accounting principles.
D) international accounting standards.
E) the standards of certified public accountants.

Accepted Answer

The purpose of an audit is to ensure that financial statements have been prepared according to generally accepted accounting principles, which are a set of accounting standards and guidelines that are commonly recognized and widely used. These principles ensure consistency and accuracy in financial reporting, and are the basis for the preparation of financial statements.

Question 15

Human resources managers need management information in all of the following areas except
A) wage levels and benefits packages.
B) financial ratios.
C) employment practices legislation.
D) union activities.
E) the firm's growth plans.

Accepted Answer

The answer of Human resources managers need management information in...

Question 16

All of the following would be examples of internal information sources except company
A) records.
B) managers.
C) competitors.
D) reports.
E) meetings.

Accepted Answer

Internal information sources are the sources that originate within the organization. Company records, managers, reports, and meetings are all examples of internal information sources. Competitors are external information sources as they do not originate within the organization.

Question 17

The specific types of information that managers need depend on their area of management and on their
A) level within the firm.
B) understanding of data.
C) background in computer science.
D) use of the information.
E) accounting background.

Accepted Answer

The level of management within the firm determines the scope of their responsibility and the types of information needed to carry out those responsibilities. Upper-level managers require more strategic and comprehensive information, while lower-level managers focus on operational data.

Answer: D 
 The type of information required depends on how the manager plans to use the information. For example, a marketing manager needs different information than a production manager, as their objectives and decision-making processes are different. The manager needs to understand the purpose of the information to ensure they are gathering the right data.

Question 18

Information rules do all of the following except
A) shorten the time spent analyzing choices.
B) correctly guide marketing decision makers.
C) help both managers and consumers make decisions.
D) remain valid forever once they are established.
E) emerge when research confirms the same results in repeated trials.

Accepted Answer

Information rules may need to be updated or revised as new information or research becomes available, so they may not remain valid forever once established.

Question 19

A manager at the executive level responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions is often called a(n)
A) information expert.
B) technology expert.
C) MIS officer.
D) informaiton technology officer.
E) database manager.

Accepted Answer

The correct term for a manager at the executive level responsible for ensuring that a firm has the necessary equipment to provide information for decision-making is "MIS officer," where MIS stands for Management Information Systems. This role focuses on overseeing the company's information technology and systems to support business operations and decision-making.

Question 20

Randy is shopping for an all-in-one printer/copier/scanner/fax machine. He decides to purchase a certain model because it has the highest price, so Randy assumes it must have the highest quality. Randy has applied a(n) ____ in making his decision.
A) data structure
B) reference price
C) database
D) information rule
E) qualitative analysis

Accepted Answer

Randy is using an "information rule," a heuristic or mental shortcut, where he associates higher price with higher quality to make his decision. This simplifies the decision-making process by applying a general rule of thumb rather than evaluating all available information in detail.

Quiz 17: Using Management and Accounting Information

The transformation of data into a form useful for a specific purpose is called

Most data gathered for an MIS come from

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."

____ is a firm's procedures for generating, using, and sharing the data and information contained in the firm's database.

Operations managers need management information in all of the following areas except

From an executive's viewpoint, which of the following statements does not describe an executive's motivation to "cook" a firm's books?

Which type of manager would be most concerned with information about the products offered by competitors?

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

An audit is

A measure that summarizes a particular characteristic of a group of numbers is called a(n)

Which of the following is not one of the sections included in a typical business report?

The process of systematically collecting, analyzing, and reporting financial information is called

When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements

The purpose of an audit is to ensure that financial statements have been prepared according to

Human resources managers need management information in all of the following areas except

All of the following would be examples of internal information sources except company

The specific types of information that managers need depend on their area of management and on their

Information rules do all of the following except

A manager at the executive level responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions is often called a(n)

Randy is shopping for an all-in-one printer/copier/scanner/fax machine. He decides to purchase a certain model because it has the highest price, so Randy assumes it must have the highest quality. Randy has applied a(n) ____ in making his decision.