Month: 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.

Which ONE of the following are essential qualities of good information?

Select ONE answer:

1. Detailed
2. Immediate
3. User-targeted
4. Profuse

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 3

1. Not correct
2. Not correct
3. Correct == > This is based on the ACCURATE model of good information. Information does not need to be DETAILED – in fact, too much detail could detract from it by undermining its ease of use. Nor does it have to be IMMEDIATE – it only needs to be available when it is required (timely). And PROFUSE implies lots of information and this can obscure the important information which could undermine both relevance and ease of use.
4. Not correct

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

Which ONE of the following are essential qualities of good information?

Select ONE answer:

1. Detailed
2. Accurate
3. Immediate
4. Profuse

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 2

1. Not correct
2. Correct == > This is based on the ACCURATE model of good information. Information does not need to be DETAILED – in fact, too much detail could detract from it by undermining its ease of use. Nor does it have to be IMMEDIATE – it only needs to be available when it is required (timely). And PROFUSE implies lots of information and this can obscure the important information which could undermine both relevance and ease of use.
3. Not correct
4. Not correct

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

Which of the following characteristics relates to strategic information as opposed to operational information?

Select ONE answer:

1. Often based on estimates
2. Often very detailed
3. Mostly very accurate
4. Usually routine

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 == > Strategic information is used by an organisation’s senior management to plan its long-term future. Therefore, much use is made of estimates about future sales, costs etc. Because strategic planning is undertaken at a level removed from day-to-operations the information is not likely to be very detailed.
2. Not correct
3. Not correct
4. Not correct

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