Question

1. Management accounting reports tend to have longer reporting intervals than financial accounting reports.

2. Management accounting reports tend to be more detailed than financial accounting reports.
Which ONE of the following combinations concerning the above statements​ (true/false) is​ correct?

A.True, True
B.True, False
C. False, True
D. False, False

Answer 1

The correct answer is C. False, True. Management accounting reports are detailed and produced as needed, which can be frequently, while financial accounting reports are prepared at standardized intervals for external users.

Step-by-step explanation:

The question pertains to the characteristics of management accounting reports versus financial accounting reports. The correct combination concerning the above statements is C. False, True. Management accounting reports are indeed more detailed than financial accounting reports because they provide information intended for internal users to facilitate decision-making, planning, and control. However, management accounting reports do not necessarily have longer reporting intervals; in fact, they are often produced as needed to assist managers, which can be daily, weekly, or monthly, depending on the managerial requirements. In contrast, financial accounting reports are prepared at standardized intervals (typically quarterly and annually) and are intended for external stakeholders such as investors, creditors, and regulatory bodies.