PT2 BTF - 6 (1-21) 7 (22-30) 8 (31-46) 9 (47-57) 10 (58-69)

Gamma Bank produces daily reports for each of its 250 branches. These enable staff to monitor and manage customer accounts where an unauthorised overdraft has either arisen or increased during the last business day. In terms of financial information, these reports can be classified as:

• planning information

• operational information

• tactical information

• strategic information

The market research department of Tetro plc increasingly makes use of information from the internet to analyse its competitive environment and the market responses to new product offerings. Use of information from this source raises concerns regarding which characteristic of useful information?

• Completeness

• Authority

• Cost-effectiveness

• Relevance

Identify which of the following statements about an information processing system is correct.

• Rules and information are processed to suggest decisions

• Information is input and processed to produce data

• Data are input and processed to produce information

• Rules and information are used to produce data

The finance director of Amalgam plc wants to tell her fellow directors about what undermines the usefulness of published financial statements. Which three of the following issues should she highlight in this regard?

• Accounting standards mean financial statements are comparable across periods

• Financial statements are aggregated

• Financial statements contain expectations about the future

• Financial statements reflect the past

• Narrative, non-financial information is absent from the financial statements

Megasave Supermarkets operates a chain of discount food stores. The company's point-of-sale terminals produce information that is used by the logistics division to determine delivery requirements for each store. To be effective, the logistics division's information processing must meet the criteria of completeness, timeliness and verifiability. Which three of the following criteria must also be met?

• Accountability

• Inalterability

• Accuracy

• Assessability

• Inclusiveness

The finance function of Almerica plc uses check digits and control totals in its financial reporting system to maintain its integrity. These two input controls are a form of:

• data verification

• data validation

• range check

• limit check

Financial statements must be prepared in a way that considers materiality. This is an aspect of which of the following characteristics of financial information?

• Understandability

• Relevance

• Faithful representation

• Comparability

The chief executive of Rumbold plc is not sure how useful the company's financial statements are. The finance director of the company has identified that they help shareholders make decisions. In addition the statement of profit or loss and the statement of financial position serve the useful purpose of:

• providing narrative descriptions of governance and control

• providing narrative description of major operations

• providing forward-looking information

• showing the results of management's stewardship of the resources entrusted to them

For financial information to meet its objectives it must be prepared on the basis of which two underlying assumptions?

• Prudence and going concern

• Prudence and the accruals basis of accounting

• Going concern and the accruals basis of accounting

• Going concern and materiality

A system that aims to increase the productivity of data and information workers is:

• an expert system

• an executive support system

• a decision support system

• an office automation system