Question

Which of the following statements is INCORRECT?

A) Management accounting information is required to comply with generally accepted
accounting principles.
B) Management accounting information does not require an external audit.
C) Management accounting information is used to help managers plan and control their
operations.
D) The primary users of management accounting are the company's managers.

Answer 1

The incorrect statement is that management accounting information is required to comply with generally accepted accounting principles.

Step-by-step explanation:

The incorrect statement is A) Management accounting information is required to comply with generally accepted accounting principles. Management accounting information is used by managers for internal decision-making and planning, and it does not necessarily need to follow generally accepted accounting principles (GAAP). This is in contrast to financial accounting, which is prepared according to GAAP for external reporting purposes. The other statements are correct. The primary users of management accounting information are the company's managers, and it is used to help them plan and control their operations. Management accounting information also does not require an external audit like financial accounting does.