Which of the Following Statements Is True About the Use

question 130

Multiple Choice

Which of the following statements is true about the use of managerial accounting information in nonprofit organizations?

• A)Universities do not exist strictly to earn profit for shareholders,so managerial accounting information is not vital to their operations.
• B)Unlike other nonprofits,hospitals (which exist with a focus on financial results in addition to health metrics)make use of managerial accounting.
• C)Because managers of nonprofit organizations need timely and relevant information to make decisions,managerial accounting is vital to these organizations.
• D)Because nonprofit organizations-hospitals,educational institutions,charities-do not exist with a profit motive,they do not use managerial accounting principles.

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Definitions:

Warranties On Presentment

Guarantees made concerning the validity, authenticity, and condition of a negotiable instrument when it is presented for payment or acceptance.

Payor

A payor, in financial transactions, is the party that makes a payment to another party, the payee, often in fulfillment of an obligation such as a bill, loan, or settlement.

Acceptor

The party who agrees to pay a bill of exchange, such as a draft or check, upon its presentation.

Primarily Liable

Being the first or main party responsible for fulfilling an obligation or debt.