Which of the Following Is the Primary Criterion for the Preparation

question 243

Multiple Choice

Which of the following is the primary criterion for the preparation of managerial accounting reports?

• A)relevance of the reports
• B)manager needs
• C)timing of the reports
• D)cost of the reports

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Definitions:

Two-asset Portfolio

It is a financial portfolio comprising two different assets, aimed at diversifying investment risk.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.