Which of the Following Are Internal Reports That Accounting Provides

question 21

Multiple Choice

Which of the following are internal reports that accounting provides to internal users?

• A)Forecasts of cash needs for next year
• B)Financial comparisons of operating activity alternatives
• C)Both forecasts of cash needs and financial comparisons
• D)Neither forecasts of cash needs nor financial comparisons

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Definitions:

Drive Theorists

Psychologists who suggest that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Homeostatic Mechanism

A process by which biological systems maintain stability and balance in response to external changes.

Incentive

Something that motivates or encourages an individual to take action or to perform a behavior.

External Goal

An objective or target that an individual aims to achieve, which is set outside of themselves, such as career achievements or material possessions.