Chapter 1 1. Information is a business resource. *a. True b. False 2. IT outsourcing is location-independent computing. a. True *b. False 3. Transaction processing systems convert non-financial transactions into financial transactions. a. True *b. False 4. Information lacking reliability may still have value. a. True *b. False 5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. a. True *b. False 6. The management reporting system provides the internal financial information needed to manage a business. *a. True b. False 7. Most of the inputs to the general ledger system come from the financial reporting system. a. True *b. False 8. When preparing discretionary reports, organizations can choose what information to report and how to present it. *a. True b. False