Management Accounting Must Observe Both Financial Accounting Standards and Cost

question 12

True/False

Management accounting must observe both financial accounting standards and cost accounting standards if it is to be useful to the organization's management.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Debits Equal Credits

A fundamental concept in double-entry bookkeeping, stating that for every financial transaction, debits must equal credits.

Main Purpose

The primary aim or objective that an organization or activity is designed to achieve.