Which of the following statements about management or financial accounting is false?
A)Financial accounting must follow GAAP.
B)Management accounting is not subject to regulatory reporting standards.
C)Both management and financial accounting are subject to mandatory recordkeeping requirements.
D)Management accounting should be flexible.

Question

Quizplus · Accepted Answer

Management accounting is not subject to mandatory recordkeeping requirements in the same way financial accounting is. Financial accounting must adhere to standards such as GAAP for reporting purposes, but management accounting is more about providing internal reports to managers for decision-making purposes and does not have the same external reporting requirements or standards.

Which of the Following Statements About Management or Financial Accounting