The Best Way to Describe the Difference Between a Transaction-Processing

question 92

Multiple Choice

The best way to describe the difference between a transaction-processing system and an operations information system is that a transaction-processing system processes routine transactions, whereas an operations information system provides

• A)large amounts of data that can then be compiled in a meaningful format.
• B)information managers can use in nonroutine decision-making and other kinds of tasks.
• C)organizations with the ability to track various functions and divisions in real time.
• D)models that help managers make better nonprogrammed decisions.

Identify different categories of expenses and their implications on a company's financial health.

Calculate basic financial ratios such as markup percentage, markdown percentage, and return on investment.

Distinguish between gross sales, net sales, and gross margin.

Recognize how inventory management impacts financial statements.

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Definitions:

Decrease

Refers to the reduction in size, quantity, or importance of something, often quantifiable in financial terms such as profits, values, or sizes.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.

Indirect Method

A method for preparing the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate operating cash flows.

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities.