Which accounting report is most commonly prepared for departmental reporting?

Question

Quizplus · Accepted Answer

The income statement is the most commonly prepared accounting report for departmental reporting as it provides a summary of the revenue and expenses for a specific period of time, which allows each department to track its financial performance. The balance sheet shows the financial position of the company at a specific point in time, the cash flow statement shows the inflows and outflows of cash during a period, and the manufacturing statement is used in manufacturing companies to calculate the cost of goods sold.

Which Accounting Report Is Most Commonly Prepared for Departmental Reporting