To be useful to management, accounting information must:
A) be prepared in accordance with general-purpose financial reports.
B) have the potential to affect decisions and influence behaviour.
C) be completely accurate.
D) be in the form of financial statements.

Question

Quizplus · Accepted Answer

Accounting information must have the potential to affect decisions and influence behavior to be useful to management. It does not necessarily have to be prepared in accordance with general-purpose financial reports or be completely accurate, although accuracy is important. Additionally, accounting information can take various forms other than financial statements.

To Be Useful to Management, Accounting Information Must