Which of the Following Statements Is Not True of Performance

question 119

Multiple Choice

Which of the following statements is not true of performance reports?

• A)Performance reports should be tailored to the responsibilities of the manager or department for which they are prepared.
• B)Performance reports normally report standard costs and variances.
• C)Performance reports should contain space for explanation of variances.
• D)Performance reports do not present the causes of variances.

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Definitions:

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards used in the United States for financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.

Investment Classifications

The categorization of investment assets based on their characteristics, risks, and potential returns, such as stocks, bonds, and real estate.

Gain or Loss

Gain or loss refers to the financial result from the sale of a capital asset, where a gain occurs if the sale price exceeds the purchase cost, and a loss occurs if the sale price is below the purchase cost.