Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A) External and internal users of accounting information have exactly the same information needs.
• B) Financial accounting is less flexible than managerial accounting.
• C) Managerial accounting provides the best information to external users.
• D) Managerial accounting emphasizes on the organization as a whole more than financial accounting.

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Definitions:

Contractual Agreement

A legally binding agreement between two or more parties.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or entity, providing an overview of a company’s financial performance and position.

Proportionately Adjusted Income Statement

An income statement in which each line item is adjusted in proportion to a certain factor or criteria to reflect a more comparable basis.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.