Which of the Following Statement/s About Management Accounting Is/are True

question 49

Multiple Choice

Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.

• A) i and ii
• B) i, ii and iii
• C) iii
• D) ii

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Definitions:

Journal Entries

A record of financial transactions in accounting, documenting the debit and credit effects on specific accounts.

Adjusting Journal Entries

Journal entries made in an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Closing Journal Entries

Entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare for the next period.

Revenue In Advance

Income received by a company for goods or services that are to be provided in the future, also known as deferred revenue.