Asked by Trinity Honaker on Jun 11, 2024
Verified
Managerial accounting reports must be prepared according to generally accepted accounting principles.
Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used for financial reporting that are adopted by most U.S. companies for preparing their financial statements.
- Recognize the unique reporting needs and practices in managerial accounting versus financial accounting.
Verified Answer
JN
Jennifer NarvaezJun 14, 2024
Final Answer :
False
Explanation :
Managerial accounting reports do not need to be prepared according to generally accepted accounting principles, as their purpose is to provide information to internal management for decision-making, rather than for external financial reporting. However, following GAAP principles can still be helpful in ensuring accuracy and consistency in reporting.
Learning Objectives
- Recognize the unique reporting needs and practices in managerial accounting versus financial accounting.
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