Multiple Choice: Evaluating Information Select the correct answer for each of the following questions:

I. Your company is interested in purchasing a new laser printer. You have contacted several suppliers and received bids from them. Which of the following pieces of information is not likely to be useful in making this decision?

a. The maintenance contract proposed by one supplier covers a shorter time period than the others.

b. The actual payment price might vary under the proposal submitted by one of the suppliers.

c. Your major competitor is a frequent customer of one of the suppliers.

d. Only one of the brands appears to have the graphics capability you need.

2. A typical accounting system:

a. Provides for the accumulation and summarization of information.

b. Provides detailed data to investors and creditors.

c. Instantly provides information to decision makers.

d. Includes substantial amounts of nonquantitative information for use by individual decision makers.

3. Which information is not likely to be included in the information provided by management to creditors and investors?

a. Information on the company’s past operating results.

b. Information on the resources currently held by the company.

c. Information on the cash flows for the last period.

d. Information on competitors’ projected sales.

4. Which set of company policies and guidelines is not likely to have an impact on the decision as to which new color monitor for a microcomputer to purchase?

a. Company policy with regard to the purchase of equipment with an expected life of more than ten years.

b. Company policy with regard to the country of origin of purchased equipment.

c. Company policy with regard to the acceptance of the lowest bid from qualified bidders.

d. Company policy with regard to approval of purchases over $100.

5. Management is concerned with decisions about:

a. Which types of financing to use.

b. How to best use available resources.

c. Generating information about operating success and cash flows for use by investors and creditors.

d. All of the above.