Which of the Following Statements Is Incorrect

question 6

Multiple Choice

Which of the following statements is incorrect?

• A)internal reports are provided to company management from within the organisation for planning and control purposes
• B)published financial reports of companies are primarily designed to fulfil the information needs of users and to discharge the company's accountability requirements
• C)the published financial statements of companies are often referred to as external reports
• D)the published financial statements of companies are often referred to as internal reports

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Definitions:

Indirect Costs

Expenses not directly tied to a specific product or service, such as overhead, administrative salaries, and utilities.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Department Contribution Margin

A measure of a department's profitability, calculated as the difference between its sales and variable costs.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company's core operations.