Management accountants are not required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Question

Quizplus · Accepted Answer

Management accountants focus on providing information to internal users like management and employees, so they have more flexibility in the format and content of their reports. They are not bound by the same rules and standards as external financial reporting, which is intended for investors and regulators. However, management accountants still need to ensure their reports are accurate and useful for decision-making purposes.

Management Accountants Are Not Required to Follow the Generally Accepted