Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following describes horizontal information?

1. Information exchanged between levels in an organization

2. Communication that flows among peers

3. Details passed from top management to lower levels

4. Instructions given in a formal manner

The correct answer is: Communication that flows among peers

Horizontal information refers to communication and information that flows among peers or colleagues at the same level within an organization. This type of information exchange facilitates collaboration, coordination, and sharing of ideas and insights among team members or departments, thereby enhancing overall efficiency and decision-making processes within an organization. By maintaining open lines of communication horizontally, organizations can foster a more cohesive work environment where all members can contribute equally, share knowledge, and work together to achieve common objectives. The other options illustrate different types of information flows within an organization. For example, information exchanged between different levels pertains more to vertical communication (upward or downward), where higher management provides instructions or information to lower-level staff, or vice versa. The option that discusses details shared from top management to lower levels specifically highlights a one-directional flow, emphasizing hierarchy rather than collaboration. Similarly, the mention of formal instructions denotes a structured communication method rather than the informal and collective nature of horizontal communication.