Which of the Following Statements About Managerial Accounting Is CORRECT

question 79

Multiple Choice

Which of the following statements about managerial accounting is CORRECT?

• A) Managerial accounting reports are audited annually by Certified Public Accountants.
• B) Managerial accounting reports help investors make decisions.
• C) Managerial accounting reports provide detailed information on parts of a company.
• D) Managerial accounting reports must follow Generally Accepted Accounting principles (GAAP).

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Definitions:

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to generate revenue.

Exchange Of Plant Assets

Transactions involving the swap of fixed assets, such as machinery or buildings, between entities, often due to operational needs or upgrades.

Commercial Substance

A concept in accounting indicating that a transaction has caused a significant change in the economic circumstances of a business.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its life.