Question

61)       Which of the following is an example of information as opposed to just data:

            A)    Number of dresses sold.
            B)    Color of dresses sold.
            C)    Dress sales in Michigan at Walmart Store #3458.
            D)    Types of dresses sold per region and season.

62)       Which of the following statements is most true:

            A)    Relevant information does not help predict the future.
            B)    There are sometimes tradeoffs between information that is relevant and a faithful representation.
            C)    Information must always be audited to be insightful an organization.
            D)    Information does not need to be neutral or free from bias.

Answer 1

Answer 61.

Correct answer is Option C - Dress sale in Michigan at Walmart Store #3458.

Explanation:

Number of dress sold , color of dress , type of dress is just data which can be used in calculating amount of dress sales .

Dress sales is a information , that may be useful for the users of financial statements.

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Answer 62.

Correct answer is option B - There are sometimes tradeoffs between information that is relevant and a faithful representation .

Explanation:

Relevant information does help in predict the future, thus option a is incorrect.

There are sometimes tradeoffs between information that is relevant and a faithful representation. And judgement may be require to derive balance between the two . Thus option b is true and correct.

Information need not always be audited to be insightful for an organization. Unaudited information is also useful for deriving insight about the operations of business organisation . thus option c is incorrect.

Information should be nutral and free from bias . thus option d is incorrect.

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