Many Firms Have Developed and Deployed Innovative Information Systems, Only

question 4

Multiple Choice

Many firms have developed and deployed innovative information systems, only to see these systems go unused by key staff members. How has Zara helped ensure its systems will be used by staff?

• A) employees are monitored by in-store cameras
• B) employee time on information systems is recorded each time the system is engaged
• C) system use drives store success and as much as 70 percent of salaries are tied to sales performance
• D) all employees must have a Fair Factories Clearinghouse account, which is used to log and report employee activity
• E) systems were designed by employees, who feel a sense of ownership in the technology deployed

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Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recognized as assets until used.

Adjusting Entry

A financial record created at the close of an accounting period to assign earnings and expenses to the time they truly took place.

Interest Receivable

This represents the amount of interest income that has been earned but not yet received in cash by the company.