Which of the Following Is an Objective of Managerial Accounting

question 197

Multiple Choice

Which of the following is an objective of managerial accounting?

• A) to generate a company's financial statements for tax reporting
• B) to provide information to business managers to assist them in controlling their business
• C) to provide information to shareholders to assist them with their investment decisions
• D) to ensure that the reports produced for internal and external business purposes are GAAP compliant

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Definitions:

Long Position

The purchase of a security such as a stock or commodity with the expectation that the asset will increase in value.

Futures Contract

A formal contract for purchasing or selling an item at a pre-set price at a future date.

Maturity

The date on which the principal amount of a financial instrument is scheduled to be repaid.

Daily Settlements

The process by which futures contracts are revalued at the end of each trading day based on the closing market prices to reflect gains and losses.