Which statement is correct?
A) Financial reports are produced at more frequent intervals than management reports.
B) Financial reports reflect past performance, whereas management reports are concerned with the future as well as the past.
C) Financial reports provide more forecast data than management reports.
D) Financial reports are prepared for internal users, whereas management reports are prepared for external users.

Question

Quizplus · Accepted Answer

Financial reports are typically produced quarterly or annually, whereas management reports can be produced on a more frequent basis as they are used to monitor ongoing performance and make informed decisions. Financial reports primarily provide information on past performance, whereas management reports are focused on both past and future performance. Forecast data is typically more heavily featured in management reports, as they are needed for planning and decision-making. Financial reports can be created for both internal and external users, whereas management reports are typically created only for internal users.

Which Statement Is Correct