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 The following statements have been made about data and information. 

(1) In-depth analysis of data on a database in order to identify undiscovered trends or patterns in the data is known as data mining.  

(2) Large public databases are a major source of feedback for many commercial organisations. 

Which of the above statements is/are true? 

A

 1 only 

B

 2 only 

C

 Neither 1 nor 2 

D

 Both 1 and 2 

 Which one of the following is often used to protect an intranet from unauthorised access by an external hacker? 

A

 Anti-virus software 

B

 Data encryption 

C

 Firewall 

D

 Passwords 

 Organisations have many sources they can use for external data. List six of these. 

 Choose the correct words from those highlighted. 

Logical/physical access control is concerned with preventing those who do not have access/already have access to a terminal or computer from gaining access to hardware/data or software. 

 Five measures to control the ability of individuals to compromise the security of an organisation were listed in the chapter. What are they? 

 Which of the following is the best measure of quality to be included within a building block model in a rapidly growing clothing business? 

A

 Number of returns in the month 

B

 Number of faulty goods returned as a percentage of number of orders received in the month 

C

 Average customer satisfaction rating where customers were asked a range of questions including quality, delivery and customer service 

D

 Number of faulty goods returned as a percentage of deliveries made in the month 

 The following extracts relate to Company X and Company Y for 20X1: 



What is the operating profit margin for both companies for 20X1? 

A

 Co X  10.7%           Co Y  8.38% 

B

 Co X   8.38%            Co Y  10.7% 

C

 Co X   23%             Co Y  19%  

D

Co X   12%             Co Y  10%   

 Companies A and B are both involved in retailing. Relevant information for the year ended 30 September 20X1 was as follows: 

                                                                                     A                          B  

                                                                                 $000                   $000 

Sales revenue                                                    50,000               200,000 

Profit                                                                     10,000                 10,000 

Capital employed                                              50,000                 50,000 

Which of the following statements is true? 

A

 The profit margin of both companies is the same 

B

 Company B is generating more profit from every $1 of asset employed than Company A 

C

 Company B is using its assets more efficiently 

D

Company B is controlling its costs better than Company A 

 In an investment centre, a divisional manager has autonomy over negotiating all selling prices, has local functions set up for payables, inventory and cash management, and uses a full debt factoring service. 

Which of the following should the divisional manager be held accountable for? 

(1) The generation of revenues. 

(2) Transfer prices. 

(3) Management of working capital. 

(4) Apportioned head office costs. 

A

 (1), (2) and (3) 

B

 (2), (3) and (4) 

C

 (1) and (3) only 

D

 (1), (2) and (4) 

The trading account of Calypso for the year ended 30 June 20X0 is set out below: 



The following amounts have been extracted from the company's statement of financial position at 30 June 20X0. 

                                                                          $ 

Trade receivables                                   60,000 

Prepayments                                             4,000 

Cash in hand                                             6,000

Bank overdraft                                           8,000 

Trade payables                                       40,000

 Accruals                                                     3,000 

Declared dividends                                  5,000  

Calculate the inventories days (using average inventories) and the current ratio for Calypso Ltd for the period. 

A

 Inventory days    33 days             Current ratio   1.25:1 

B

 Inventory days    49 days             Current ratio   1.25:1 

C

 Inventory days    49 days             Current ratio   1.93:1 

D

 Inventory days    33 days             Current ratio   1.93:1