Divisional income statements do not have to follow generally accepted accounting principles (GAAP) because they are internal reports.

Name: Divisional income statements do not have to follow generally accepted accounting principles (GAAP) because they are internal reports.
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Question

Quizplus · Accepted Answer

Divisional income statements are used internally for management purposes and do not need to comply with GAAP, which is required for external financial reporting.

Divisional Income Statements Do Not Have to Follow Generally Accepted