When Top Management Directs and Controls All Functions of the Computer

question 69

Multiple Choice

When top management directs and controls all functions of the computer information system through a chief information officer,the system is said to be:

• A)centralized.
• B)decentralized.
• C)effective.
• D)outsourced.

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Definitions:

Payables Deferral Period

The average length of time between a firm’s purchase of materials and labor and the payment of cash for them. It is calculated by dividing accounts payable by credit purchases per day (cost of goods sold/365).

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw upon funds up to a specified limit at their discretion.

Financial Strength

The ability of an entity to meet its financial obligations, often evaluated through metrics like liquidity ratios, solvency ratios, and profitability.

Public Warehouse Agreement

A contract between a warehouse owner and a renter specifying the storage, handling, and management of goods in a public warehouse.