Which of the Following Statements Is True of Management Accounting

question 35

Multiple Choice

Which of the following statements is true of management accounting?

• A)The primary users of management accounting are the external stakeholders of a company.
• B)Management accounting information is used to help managers plan and control their operations.
• C)Management accounting information requires an external audit by an independent CPA.
• D)Management accounting information must comply with Generally Accepted Accounting Principles.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Banker's Acceptance

A short-term debt instrument issued by a company that is guaranteed by a commercial bank.

Bills Of Exchange Act

Legislation that governs the creation, transfer, and payment of bills of exchange, a type of negotiable instrument.

Negotiable Instruments

Legal documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name either mentioned or left blank.