The Major Difference Between the Financial Reporting System (FRS)and the Management

question 41

Multiple Choice

The major difference between the financial reporting system (FRS) and the management reporting system (MRS) is the

• A)FRS provides information to internal and external users; the MRS provides information to internal users
• B)FRS provides discretionary information; the MRS provides nondiscretionary information
• C)FRS reports are prepared using information provided by the general ledger system; the MRS provides information to the general ledger system
• D)FRS reports are prepared in flexible, nonstandard formats; the MRS reports are prepared in standardized, formal formats

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Definitions:

Relative Frequency Distributions

A distribution where each value is expressed as a relative frequency or proportion of the total number of occurrences.

Normal Approximation

The process of using the normal distribution to approximate the distribution of a sample statistic.

Standardized Test Statistic

A statistic that has been transformed to have a mean of zero and a standard deviation of one, used in hypothesis testing.

P-value

A statistical measure that helps scientists and researchers determine the significance of their results, representing the probability of observing the collected data, or something more extreme, if the null hypothesis were true.