In Order to Be Useful to Managers, Management Accounting Reports

question 134

Multiple Choice

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

• A) provide objective measures of past operations and subjective estimates about future decisions
• B) be prepared in accordance with generally accepted accounting principles
• C) be provided at any time management needs information
• D) be prepared to report information for any unit of the business to support decision making

---

Definitions:

Prospectus

An investment document that provides details about a company or financial product, aimed at potential investors.

Registration Statement

A document submitted to securities regulators containing financial and other significant information about a company before it issues stock.

Prospectus

A formal document that companies use to describe the securities they are offering for sale to investors.

SEC

The Securities and Exchange Commission, a U.S. federal agency that oversees the securities industry to protect investors and maintain fair, orderly, and efficient markets.