All of the Following Are Characteristics of Management Accounting, Except

question 104

Multiple Choice

All of the following are characteristics of management accounting, except:

• A) Reports are used primarily by insiders rather than by persons outside of the business entity.
• B) Its purpose is to assist managers in planning and controlling business operations.
• C) Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.
• D) Information may be tailored to assist in specific management decisions.

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Definitions:

Interest Accrued

The amount of interest that has accumulated over time but has not yet been paid or charged.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

Loss

A financial condition where expenses exceed income, leading to a negative net income.