Data Must Be Converted into Information to Be Considered Useful

question 43

Multiple Choice

Data must be converted into information to be considered useful and meaningful for decision making.There are seven characteristics that make information both useful and meaningful.If the same information can be reproduced by two independent and knowledgeable people,it is representative of the characteristic of

• A)reliability.
• B)relevance.
• C)verifiability.
• D)truthful.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock.

Days' Sales In Inventory

A measure of how efficiently a company turns its inventory into sales, calculated as inventory divided by daily sales.

Quick Ratio

An assessment of a firm's capacity to fulfill its immediate liabilities using its most convertible assets, excluding stock.

Source Of Cash

Various origins from which a company or individual can acquire cash, including operations, financing, and investing activities.