GAAP must be followed when managerial accounting reports are prepared.

Name: GAAP must be followed when managerial accounting reports are prepared.
Brand: Quizplus
Rating: 4.8 (29 reviews)

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) are mandatory for financial accounting reports, not necessarily for managerial accounting reports. Managerial accounting reports serve internal purposes and are not required to follow GAAP. However, using GAAP principles in managerial accounting can enhance consistency and accuracy in reporting.

GAAP Must Be Followed When Managerial Accounting Reports Are Prepared