Chapter 1—The Information System: An Accountant’s Perspective TRUE/FALSE 1. Information is a business resource. ANS: T PTS: 1 2. IT outsourcing is location-independent computing. ANS: F PTS: 1 3. Transaction processing systems convert non-financial transactions into financial transactions. ANS: F PTS: 1 4. Information lacking reliability may still have value. ANS: F PTS: 1 5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. ANS: F PTS: 1 6. The Management Reporting System provides the internal financial information needed to manage a business. ANS: T PTS: 1 7. Most of the inputs to the General Ledger System come from the Financial Reporting System. ANS: F PTS: 1 8. When preparing discretionary reports, organizations can choose what information to report and how to present it. ANS: T PTS: 1 9. Retrieval is the task of permanently removing obsolete or redundant records from the database. ANS: F PTS: 1 10. Systems development represents 80 to 90 percent of the total cost of a computer system. ANS: F PTS: 1 11. The database administrator is responsible for the security and integrity of the database. ANS: T PTS: 1