The major difference between the financial reporting system (FRS)and the management reporting system (MRS)is the
A)FRS provides information to internal and external users; the MRS provides information to internal users
B)FRS provides discretionary information; the MRS provides nondiscretionary information
C)FRS reports are prepared using information provided by the general ledger system; the MRS provides information to the general ledger system
D)FRS reports are prepared in flexible, nonstandard formats; the MRS reports are prepared in standardized, formal formats

Question

Quizplus · Accepted Answer

The major difference between the financial reporting system and the management reporting system is that FRS provides information to both internal and external users, while MRS provides information only to internal users. FRS reports are generally prepared in a standardized format, while MRS reports may be more flexible and tailored to the needs of specific departments or individuals within the organization. Additionally, FRS reports are typically regulated by accounting standards and may be subject to external audits, while MRS reports are not subject to the same level of scrutiny or regulation.

The Major Difference Between the Financial Reporting System (FRS)and the Management