In comparison with a financial statement prepared in conformity with generally accepted accounting principles,a management accounting report is more likely to:
A)Be used by decision makers outside of the business organization.
B)Focus upon the operation results of the most recently completed accounting period.
C)View the entire organization as the reporting entity.
D)Be tailored to the specific needs of an individual decision maker.

Question

Quizplus · Accepted Answer

A management accounting report is tailored to the specific needs of an individual decision maker within the organization. It is not required to follow generally accepted accounting principles, and can focus on any particular aspect of the organization as determined by the decision maker who is requesting the report. Financial statements prepared according to GAAP, on the other hand, are intended to be used by external stakeholders and must follow specific accounting standards.

In Comparison with a Financial Statement Prepared in Conformity with Generally