Day: January 12, 2025

Accounting Multiple Choice Question – 12 January 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

  1. It is both forward looking and historical
  2. It is governed by statute
  3. It is primarily used by shareholders
  4. It is likely to include a statement of cash flows

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
  2. Not correct
  3. Not correct
  4. Not correct

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