ACCA Applied Knowledge · Management Accounting · Accounting for management
Which statement about the distinction between information and knowledge is MOST accurate?
Knowledge arises when people combine information with their experience, understanding and judgement so that it can be applied to decisions. It goes beyond processed information, which itself goes beyond raw data. Auditing and database storage do not define knowledge.
- AKnowledge is unprocessed data that is stored in a database
- BKnowledge arises when people combine information with experience, understanding and judgement so that it can be appliedCorrect
- CKnowledge and information are identical terms in management accounting
- DKnowledge is information that has been audited
Explanation
Information becomes knowledge when individuals interpret it using their experience, context and judgement, enabling them to act. Unprocessed data is not knowledge, the terms are not identical, and audit status is not what defines knowledge.
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