P AP E R MA1: MANA GEMEN T IN FORMA TION
4 Which of the following is not a purpose of management information in a company?
A To provide records of current and actual performance
B To compare actual performance with planned performance
C To help management with decision making
D To inform customers about the company’s products
5 Which of the following is not correct?
A Cost accounting can be used for inventory valuation to meet the requirements of
internal reporting only
B Management accounting provides appropriate information for decision making,
planning, control and performance evaluation
A
C Routine information can be used for both short-term and long-run decisions
C D Financial accounting information can be used for internal reporting purposes
C
ox
A 6 Which of the following are all qualities of good management information?
A Digital, brief, relevant
G
L
B
C
Reliable, consistent, timely
Secure, accurate, printed
lB
ba
D Accessible, universal, complete
O
B
lo
7 Which of the following statements is incorrect?
A A Management accounting reports are more accurate than financial accounting
G
statements.
L
B Management accounting reports are more detailed than financial accounting
A
statements.
B
C
C Management accounting reports are more frequent than financial accounting
O statements.
AC
X D Management accounting reports are not disclosed to shareholders and investors.
. 8 Which one of the following is always a quality of good information?
C A Immediate availability
O B Availability to everyone
M C Reliable
D Technically accurate
9 Which one of the following statements is correct?
A Data is held on computer in digital form whereas information is in a form that is
readable to human beings.
B Information is obtained by processing data.
C Data and information mean the same thing.
D Data consists of numerical or statistical items of information.
2 K A P LA N P UB L I S H I N G
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