Which of the Following Statements Is True of Managerial Accounting

question 106

Multiple Choice

Which of the following statements is true of managerial accounting?

• A) Reporting under managerial accounting is constrained by rules such as generally accepted accounting principles.
• B) Managerial accounting is required to be reported annually, also may be reported monthly or quarterly.
• C) Managerial accounting provides information to the external stakeholders of the company.
• D) Managerial accounting is primarily concerned with generating information for use by managers.

Analyze the impact of changes in balance sheet accounts on cash flows.

Compute cash flows associated with the sale or purchase of plant assets.

Calculate depreciation and its effect on cash flow from operating activities.

Explain the treatment of non-cash transactions in the cash flow statement.