The correct statement is:
A)The income statement prepared for internal use is similar to one prepared for external use
B)The income statement prepared for internal use is more summarised than one prepared for external use
C)The accounting standards govern the presentation of income statements prepared for both internal and external use
D)While the two income statements have common elements the statement prepared for external use is more aggregated than the one prepared for internal users

Question

Quizplus · Accepted Answer

While both income statements have common elements, the statement prepared for external use is more aggregated and includes additional details required by accounting standards for public reporting. The internal income statement, on the other hand, may provide more detailed information for management decision-making purposes.

The Correct Statement Is