Which of the Following Statements Does Not Describe a Characteristic

question 56

Multiple Choice

Which of the following statements does not describe a characteristic of management accounting?

• A)Management accounting must conform to GAAP.
• B)Approximate amounts rather than accurate amounts or refined estimates are often used in management accounting.
• C)Management accounting places a great deal of emphasis on the future.
• D)Management accounting is more concerned with units of the organization rather than with the organization as a whole.

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Definitions:

Cash Flow

The total interchange of cash and assets comparable to cash, circulating in and out of a commercial venture.

Creditors

Individuals or institutions that lend money or extend credit to others, expecting repayment.

Long-Term Debt

Borrowings and financial obligations lasting more than one year, used to finance a company’s operations or other long-term investments.

Operating Cash Flow

Cash generated by a company’s core business operations.