The Primary Objective of Managerial Accounting Is

question 35

Multiple Choice

The primary objective of managerial accounting is

• A) to provide stockholders and potential investors with useful information for decision making.
• B) to provide banks and other creditors with information useful in making credit decisions.
• C) to provide management with information useful for planning and control of operations.
• D) to provide the Internal Revenue Service with information about taxable income.

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Definitions:

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Serial Bonds

Bonds of a single issue that mature in installments at regular intervals.

Bonds Outstanding Method

A method used to calculate the total amount of issued bonds by a corporation that have not yet been redeemed or matured.