Which of the Following Statements About Reporting Is True

question 91

Multiple Choice

Which of the following statements about reporting is true?

• A)External users need detailed, rather than summarized, information.
• B)All reports, internal and external, are derived only from general ledger data.
• C)All organizations need similar internal reports.
• D)Internal reports are tailored to the specific needs of each management level and function.

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Definitions:

Inventory Items Sold

The total number of product units a company has sold to its customers during a specific period.

Materials Cost

The total expense incurred for the materials that are used in the production of goods or services.

Purchase Order

A document generated by a buyer and sent to a seller specifying products or services to be purchased.

Sales Order

A document created by a seller upon the receipt of an order from a customer, detailing the products or services ordered and the terms of the sale.