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:

Footnotes

Additional information provided in financial statements to clarify figures or add context for readers.

Cost Method

A valuation approach in accounting that assigns the initial purchase price to inventories or investments.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, but not retired, and are available for reissuance or other corporate uses.

Reacquire

The act of obtaining back or regaining ownership of securities or assets previously sold or issued.