Which of the Following Is Necessary for Management Accounting Information

question 29

Multiple Choice

Which of the following is necessary for management accounting information to be useful?

• A) It must report to external users.
• B) It must develop a framework of principles and guidelines.
• C) It must adapt to accommodate changes in the business environment.
• D) It must focus on the enterprise in its entirety.

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Definitions:

Residual Dividend Policy

A strategy where dividends are paid to shareholders after all project capital needs are met.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by shareholders' equity.

Capital Projects

Large, long-term investments undertaken by a company or government to create, expand, or improve physical assets such as buildings, infrastructure, or equipment.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as reported on the balance sheet.