Which of the following statements about managerial accounting is incorrect?
a. Managerial accounting information is used primarily by managers within the organization.
b. Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles [GAAP]).
c. Managerial accounting is primarily forward looking, as opposed to focusing on historical information.
d. Managerial accounting information is used both at the organizational level and at the sub-unit (department) level.
e. Budgets are an important managerial accounting tool
Ans: b. Managerial accounting information is prepared in accordance with rules established by outsiders (generally accepted accounting principles [GAAP]).
You might also like to view...
Curt borrowed money from a bank to purchase a fishing boat. He purchased property insurance on the boat. Curt had difficulty making loan payments because he did not catch many fish, and fish prices were low
Curt intentionally sunk the boat, collected from his insurer, and paid off the loan balance. This scenario illustrates the problem of A) adverse selection. B) moral hazard. C) nondiversifiable risk. D) attitudinal hazard.
Which of the following causes a firm's cost of capital (WACC) to differ from an investor's required
rate of return on the company's common stock? A) the fact that the risk-free rate of interest has increased B) The market risk premium exceeds 12%. C) the incurrence of flotation costs when new securities are issued D) None of the above N the WACC and required return are the same.