Which Statement Below Regarding the AIS and Managerial Reports Is

question 10

Multiple Choice

Which statement below regarding the AIS and managerial reports is false?

• A) The AIS is best utilized for financial data while the management information system is best utilized for operational data.
• B) The AIS must be able to provide managers with detailed operational information about the organization's performance.
• C) Both financial and nonfinancial data are required for proper and complete evaluation of organizational performance.
• D) Most source documents capture both financial and nonfinancial data about business transactions.

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Definitions:

Replacement Cost

The current cost of replacing an asset with a similar new asset.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Physical Inventory

An actual count of all merchandise or stock on hand, conducted periodically to ensure the accuracy of inventory records.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.