Internal accounting reports must follow generally accepted accounting principles and account for assets at historical cost.

Question

Quizplus · Accepted Answer

Internal accounting reports do not need to strictly follow generally accepted accounting principles and assets can be accounted for at fair market value, rather than historical cost. Internal accounting reports are typically used for managerial decision-making and do not need to conform to external reporting requirements.

Internal Accounting Reports Must Follow Generally Accepted Accounting Principles and Account