Which of the Following Systems Is Classified as an Operations

question 107

Multiple Choice

Which of the following systems is classified as an operations information system?

• A) Information reporting system
• B) Decision support system
• C) Executive information system
• D) Transaction processing system
• E) Geographic information system

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Definitions:

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest charges with its earnings before interest and taxes (EBIT).

Debt-To-Equity Ratio

A calculation to determine a firm's financial leverage by dividing the total amount of its liabilities by the equity of its shareholders.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by stockholders’ equity, showing the level of financial leverage.