Accounting Multiple Choice Question – 21 December 2024

Alex Ltd correctly records and analyses all its sales transactions.

At the end of each month, a report is produced for the sales director, Lucy, listing details of every sales transaction by customer, products purchased, quantities and prices.

Which of the following reflects how the data and information content of this report would be assessed?

Select ONE answer:

1. Good quality of data, but poor quality of information
2. Good quality of both data and information
3. Poor quality of data, but good quality of information
4. Poor quality of both data and information

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > The data is both accurate and complete, so as data it must be classed as good data. However, the report is completely inappropriate for the sales director, Lucy, because it has too much detail, no aggregation, & is not particularly relevant. So, it fails the ACCURATE requirements of being easy to use, user-targeted, relevant or cost-beneficial.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.