Question

Which is not a characteristic of management accounting​ information? A. Emphasizes the external financial statements B. Provides detailed information about individual parts of the company C. Emphasizes relevance D. Focuses on the future

Answer 1

Answer: A - Emphasizes the external financial statements

Explanation: The characteristic of management accounting​ information are what makes the accounting information relevant and they include:

1. Verifiability: Management Accounting information must be verifiable that is one must be able to confirm the information on the accounts using other source documents.

2. Objectivity: Management Accounting information must be useful in decision making and planning for the future of an organisation.

3. Relevance: Management Accounting information must be reliable for decision making. The owners and decision makers must be able to rely on the information presented in the management account

4. Understandability: Management Accounting information must be understood by any user of the information presented therein. Information therein must be simple and not complex.

5. Comparability: Management Accounting information must be easy to compare with others in the same industry and also from year to year to enhance a good decision making process.