ACCA FA · Chapter 1 · Question 3 of 10
Which of the following statements about financial accounting and management accounting is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Management accounts may include forecasts and do not have to follow IFRS Accounting Standards
Explanation
Management accounting produces information for internal users in whatever format is most useful, which may include budgets and forecasts, and it is not bound by IFRS or company law. Financial accounting is aimed mainly at external users, is largely historic and is usually regulated. Management accounts are not subject to statutory audit, and all businesses (not only listed companies) keep financial accounting records.
More The context and purpose of financial reporting MCQs
- Q5Which body is responsible for developing and issuing IFRS Accounting Standards?
- Q6What is the main role of the IFRS Interpretations Committee?
- Q7Which of the following statements regarding responsibility for the financial statements of a limited liability company is correct?
- Q8Within a system of corporate governance, which of the following is a key role of non-executive directors?
- Q9In an ordinary (unlimited) partnership, which of the following statements is correct?