Which of the Following Statements Is True of Management Accounting

question 110

Multiple Choice

Which of the following statements is true of management accounting?

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

---

Definitions:

Nonreciprocal

Pertains to a relationship or interaction where one party contributes or participates more than the other.

Transitive

In logic and mathematics, a relation is transitive if it holds that whenever relation A relates to B, and B relates to C, then A must relate to C.

Unbalanced

Lacking equilibrium or stability in terms of emotional state, workload, resource distribution, or other areas affecting individuals or groups.

Balance Theory

A psychological theory suggesting that individuals strive for consistency among their beliefs, attitudes, and sentiments in interpersonal relationships.