Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) There are no formal requirements for producing and presenting management accounting information
• B) Financial accounting information is intended mainly for users outside the organization (such as shareholders and creditors)
• C) Companies are not legally required to produce financial accounting information
• D) Management accounting information is often private, whereas financial accounting information is public

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Definitions:

Cash Dividends

Payments made by a company to its shareholders from its profits or reserves, typically in the form of cash.

Dividends Payable

liabilities representing the amount of dividends declared by a company's board but not yet paid to shareholders.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.