Which statement is correct?
A)Financial reports are prepared for internal users whereas management reports are prepared for external users.
B)Financial reports are produced at more frequent intervals than management reports.
C)Financial reports reflect past performance whereas management reports are concerned with the future as well as the past.
D)Financial reports provide more forecast data than management reports.

Question

Quizplus · Accepted Answer

Financial reports generally contain information about a company's past performance, such as its financial position, results of operations, and cash flows. On the other hand, management reports are focused on both past and future performance, providing insights and analysis that help managers make informed decisions about the future direction of the company. Therefore, statement C is correct. The other statements are incorrect. Financial reports are typically produced on an annual, quarterly, or monthly basis, whereas management reports can be produced on a more frequent or ad hoc basis. Additionally, financial reports are prepared for both internal and external users, whereas management reports are primarily intended for internal use. Finally, financial reports may include some forecast data, but management reports typically provide more detailed and forward-looking analysis.

Which Statement Is Correct