Which of the Following Types of Reports Is More Characteristic

question 60

Multiple Choice

Which of the following types of reports is more characteristic of managerial accounting than financial accounting?

• A)An internal report used by management
• B)An external report used by investors
• C)A report prepared according to GAAP
• D)A report prepared periodically (monthly,quarterly,annually)

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Definitions:

Conversion Ratio

In finance, it is the number of shares a holder can obtain by converting a convertible security into common stock.

Market Conversion Value

The value of a convertible security if it is converted into a specified number of shares of common stock, based on the current market price.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Credit Default Swap

A financial derivative allowing an investor to "swap" or offset the risk of credit loss from the default of a borrower.