In Organizations That Operate Significant Nonaccounting Information Systems, Such as Manufacturers

question 38

Multiple Choice

In organizations that operate significant nonaccounting information systems, such as manufacturers, a reporting arrangement wherein the chief information officer reports to the ________ is more common and effective.

• A) chief technology officer
• B) chief financial officer
• C) chief security officer
• D) chief executive officer

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Definitions:

Earnings Before Taxes

A company's profitability measure calculated by subtracting all expenses, except taxes, from revenues.

Earnings Per Share

A company's profit divided by its number of outstanding shares of common stock.

Convertible Bond

A type of bond that allows bondholders the option to convert their debt into a predetermined number of shares of the issuing company.

Call Price

The price at which a bond or other financial security can be repurchased by the issuer before its maturity date, often higher than the face value to compensate investors.