Which of the following statements regarding operational reports is true?
A)Any operational report that is based on accrual accounting assumptions can only be relied upon if it is generated using correctly adjusted data.
B)Operational reports can be generated at any time after a transaction is recorded
C)Operational reports usually extract and report data directly from summarised general ledgers.
D)Operational reports are constructed in accordance with the requirements of the relevant accounting standards and they are freely available to both external and internal users.

Question

Quizplus · Accepted Answer

Operational reports can be generated at any time after a transaction is recorded, without the need for adjustments or adherence to accounting standards. They provide timely and accurate information for internal decision-making purposes. Option A is incorrect because operational reports do not necessarily have to be based on accrual accounting assumptions. Option C is incorrect because operational reports can extract data from any part of the accounting system, not just the summarised general ledgers. Option D is incorrect because operational reports are not required to follow accounting standards and are generally only available to internal users.

Which of the Following Statements Regarding Operational Reports Is True