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.

---

Definitions:

Automatic Stabilizer

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action, such as progressive tax rates and unemployment benefits.

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or services and are part of government consumption expenditure and gross investment.

Net Taxes

The difference between the total amount of taxes collected by the government and any transfers or subsidies it pays out.

Spending Multiplier

A concept in economics that quantifies the impact of a change in fiscal policy on the overall economy, indicating how an initial change in spending leads to a larger change in income and output.