Which is correct about financial information? a. Financial information’s purpose is only to comply with needs external users such as the government, investors and external stakeholders. b. Financial information can be used for forecasting and budgeting. c. Financial information deviates from the actual thus it justifies erroneous management decisions. d. Financial information is used by line managers to evaluate performance of staff positions. e. b & d f. All of the above g. None of the above

Which is correct about financial information? a. Financial information’s purpose is only to comply with needs external users such as the government, investors and external stakeholders. b. Financial information can be used for forecasting and budgeting. c. Financial information deviates from the actual thus it justifies erroneous management decisions. d. Financial information is used by line managers to evaluate performance of staff positions. e. b & d f. All of the above g. None of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

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Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
Which of the following statements is false? Select one: O A. Management accounting statements need not comply with Accounting regulations O B. Financial accounting statements normally reflect more detail than would be found in management accounting reports O C. Management accounting reports emphasise future activities and future costs O D. Financial accounting data are directed primarily at external users rather than internal users.
Which of the following statements is incorrect? a.Management accounting focuses mainly on the internal user. b.The information gathered from management accounting is not required by law. c.The practice of management accounting is fairly flexible. d.Reports produced using management accounting must follow GAAP.
Which of the following statements is incorrect?A. The practice of management accounting is fairly flexible.B. The information gathered from management accounting is not required by law.C. Management accounting focuses mainly on the internal user.D. Reports produced using management accounting must follow GAAP.
Which statement is false?a. Management accounting makes use of both quantitative and qualitative information for maximum use of managementb. Financial accounting emphasizes current and future data while management accounting is essentially historical.c. Management accounting covers a much broader scope, for it goes beyond the boundaries of traditional accounting.d. Management accounting information merely assist managers in rendering judgment, but it is not a substitute for judgment.
Which of the following statements is incorrect? Select one: a. Reports produced using management accounting must follow GAAP. b. The information gathered from management accounting is not required by law. c. The practice of management accounting is fairly flexible. d. Management accounting focuses mainly on the internal user.
Which of the following statements is true? Select one: 1.Non-financial measures may reflect drivers of future financial performance. 2.Non-financial measures are not consistent with contemporary management accounting. 3.Non-financial measures are more difficult to action. 4.Non-financial measures are more difficult to understand.
Which of the following is NOT one of the limitations of Management Accounting?Select one:a. Lack of wide knowledgeb. Complicated approachc. Costly systemd. Concerned with the future
Which of the following is not considered as external users of general purpose financial statements a. Government b. Lenders C. Rank and file employees of the company d. Investors This fundamental characteristic requires a piece of information to be complete, neutral, and free from material error a. Faithful representation b. Relevance c. Verifiability d. Comparability Which of the following is not an enhancing characteristic a. Verifiability b. Comparability c. Understandability d. Relevance
“Management accounting should not fit the straitjacket of financial accounting.” Explain and givean example.
Discuss the implications of material errors on financial statements and the potential consequences for an organization. How can these errors affect the organization's reputation and stakeholders' trust?
Since accounting information is used for decision making. As a result of financial manipulations, it is expected that the result might be unrealistic. Therefore, it is far necessary for the accounts department to show fair financial results which is only possible if ______________________. a. None of the options b. A strong compliance with accounting standards c. A fair accountant is hired on this position d. Reputed audit firm is selected for audit