ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following is a characteristic of management accounting information, as opposed to financial accounting information?
Management accounting information is mainly produced for internal decision-makers and can take whatever form managers need. Unlike financial accounting, it is not required to follow IFRS, is not subject to statutory audit and is not published for shareholders or filed with regulators.
- AIt must be prepared in line with IFRS Accounting Standards
- BIt is mainly produced for internal decision-makers and can be in any format they needCorrect
- CIt is normally subject to statutory external audit each year
- DIt is published for shareholders and filed with the regulator
Explanation
Management accounting is produced for managers, so its content, format and frequency are decided by management's needs. IFRS compliance, statutory audit and publication relate to financial accounting for external users.
Did you get it right without looking?
One question tells you little. A timed set on Financial information provided by business shows your real accuracy, how long you take and where you lose marks.
More Financial information provided by business questions
- Which of the following is a feature of financial information that is mainly produced for internal management rather than for external users?
- Which statement best describes the main purpose of the statement of cash flows?
- At the year end, Delta Co has total assets of $540,000 and non-current liabilities of $150,000. Its equity is $270,000. How much are its cur…
- Which of the following users is most likely to rely mainly on management accounting information rather than published financial statements?
- Which of the following statements about the reporting of financial accounting information is correct?
- A retail company's finance director wants to rely on information from the sales ledger when preparing a report for the board. The report wil…