ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following is an example of financial information used primarily for stewardship and accountability to shareholders rather than for internal operational control?
The annual report with the statement of financial position is used for stewardship and accountability. It shows shareholders how directors have used the resources entrusted to them, while daily cash, machine utilisation and variance reports mainly help managers control day-to-day operations.
- AThe annual report including the statement of financial positionCorrect
- BA daily cash balance report for the treasurer
- CA weekly machine utilisation report
- DA monthly departmental cost variance report
Explanation
The annual report shows how directors have managed the resources entrusted to them, which is stewardship. The other reports are internal operational or control tools used by managers.
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