Question

Managerial accounting reports are a.prepared according to management needs b.prepared according to GAAP c.related to the entire business entity only d.prepared periodically only

Answer 1

Answer:

The correct answer is a. Prepared according to management needs.

Explanation:

Managerial Accounting Reports are designed and produced to help internal managers in planning for future and decision making process for the company. This is why Managerial Accounts are prepared according to management (the users of managerial accounts). Financial accounts needs to be prepared according to GAAP while there is no such requirement for preparing managerial accounts.