Which of the Following Is Not a Characteristic of Financial

question 129

Multiple Choice

Which of the following is not a characteristic of financial accounting?

• A)Financial reports are prepared according to GAAP.
• B)Information is used by external parties.
• C)Information is subjective,relevant,and future-oriented.
• D)Reports are prepared periodically.

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Definitions:

Planning

The process of setting objectives and determining how to accomplish them.

Managerial Accounting Information

Financial data and reports that are used by a company's management team to make informed operational and strategic decisions.

Reporting Standard

Guidelines and rules that organizations follow to maintain uniformity and transparency in financial reporting.

Relevance

The quality of information that indicates the information makes a difference in a decision.