Which of the following statements about managerial accounting is CORRECT?
A) Managerial accounting reports are audited annually by Certified Public Accountants.
B) Managerial accounting reports help investors make decisions.
C) Managerial accounting reports provide detailed information on parts of a company.
D) Managerial accounting reports must follow Generally Accepted Accounting principles (GAAP).

Question

Quizplus · Accepted Answer

Managerial accounting reports provide detailed information on specific parts of a company such as departments, products, or projects. Option A is incorrect because managerial accounting reports are not subject to external auditing by CPAs. Option B is incorrect because managerial accounting reports are primarily used by internal stakeholders such as managers, not investors. Option D is incorrect because managerial accounting reports do not have to follow GAAP, but they should be consistent and reliable for internal decision-making purposes.

Which of the Following Statements About Managerial Accounting Is CORRECT