Since Internal Users Have Access to All the Underlying Data

question 66

Multiple Choice

Since internal users have access to all the underlying data used for managerial accounting reports

• A)they can create reports that suit their particular decision making needs.
• B)there is no need to use financial data in making decisions.
• C)both they can create reports that suit their particular decision making needs and there is no need to use financial data in making decisions.
• D)neither they can create reports that suit their particular decision making needs nor there is no need to use financial data in making decisions.

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Definitions:

Net Working Capital

This is the difference between a company's current assets and its current liabilities, indicating its short-term financial health and ability to cover short-term obligations.

EBIT

Earnings Before Interest and Taxes, an indicator of company profit excluding costs from interest and income tax.

Net Working Capital

Net working capital is a financial metric that measures a company's ability to pay off its current liabilities with its current assets.

Interest Expenses

Costs incurred by an entity for borrowed funds, typically presented in the income statement as a deduction from revenues.