Which of the Following Is the Principal Reason for Preparing

question 137

Multiple Choice

Which of the following is the principal reason for preparing managerial accounting reports?

• A) usefulness to management
• B) cost of preparation
• C) clarity
• D) GAAP

---

Definitions:

Real Option

A financial concept that represents the value of additional future investment opportunities available to a firm when it undertakes a capital investment project.

Underlying Source of Risk

Fundamental factors that can cause uncertainty in investment returns, including but not limited to market volatility, economic changes, and geopolitical events.

Real Assets

Real assets refer to physical or tangible assets such as land, buildings, gold, or commodities, which have intrinsic value.

Interest-Bearing Assets

Interest-bearing assets are financial assets that earn interest over time, such as savings accounts, bonds, or loans given to others.