Which of the following statements is FALSE?
A) Management accounting includes creating reports for management decision making purposes, such as the balanced scorecard.
B) Financial accounting includes creating reports for external stakeholders, such as the income statement and balance sheet.
C) Cost accounting includes creating reports associated with the conversion process, such as purchasing reports.
D) Responsibility accounting includes creating reports for responsible parties, such as XBRL instance documents.

Question

Quizplus · Accepted Answer

Responsibility accounting focuses on gathering and reporting financial information related to the responsibilities of individual managers or departments, not on creating XBRL (eXtensible Business Reporting Language) instance documents. XBRL documents are used for communicating financial data electronically and are more relevant to financial accounting for external reporting purposes.

Which of the Following Statements Is FALSE