In comparison with a financial statement prepared in conformity with generally accepted accounting principles,a managerial accounting report is less likely to:
A)Focus upon the entire organization as the accounting entity.
B)Focus upon future accounting periods.
C)Make use of estimated amounts.
D)Be tailored to the specific needs of an individual decision maker.

Question

Quizplus · Accepted Answer

A financial statement prepared in conformity with generally accepted accounting principles (GAAP) is required to focus upon the entire organization as the accounting entity. Managerial accounting reports, on the other hand, can focus on specific areas or departments within the organization, and may not provide a complete picture of the organization's financial situation. Therefore, the correct choice is A. B, C, and D are all features of managerial accounting reports, as they often focus on future periods, make use of estimates, and are tailored to the specific needs of decision makers.

In Comparison with a Financial Statement Prepared in Conformity with Generally