Which of the Following Statements Is INCORRECT

question 65

Multiple Choice

Which of the following statements is INCORRECT?

• A) The primary users of management accounting are the company's managers.
• B) Management accounting information is used to help managers plan and control their operations.
• C) Management accounting information does not require an external audit.
• D) Management accounting information is required to comply with generally accepted accounting principles.

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Definitions:

Account Receivable

Funds that are owed to a company by clients or customers who have received goods or services on credit.

Total Liabilities

Represents the combined debts and obligations that a company owes to outside parties at a specific point in time.

Asset

Any resource owned or controlled by a business or an individual that is expected to produce future economic value.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership equity spread among stockholders.