Which of the following statements about reporting is true?
A)External users need detailed, rather than summarized, information.
B)All reports, internal and external, are derived only from general ledger data.
C)All organizations need similar internal reports.
D)Internal reports are tailored to the specific needs of each management level and function.

Question

Quizplus · Accepted Answer

Internal reports are customized to meet the specific needs of various management levels and functions. Since different levels of management have different roles and responsibilities, they require different types of information to make effective decisions. In contrast, external users, such as creditors or investors, usually require summarized information rather than detailed reports. Furthermore, internal reports may draw data from source systems other than the general ledger. Finally, internal reports can vary widely among different organizations depending on their unique goals and objectives.

Which of the Following Statements About Reporting Is True