Accounting Multiple Choice Question – 14 January 2025

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

Select ONE answer:

1. It is governed by statute
2. It is primarily used by shareholders
3. It is likely to include budgetary information on the future of the business
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 3

1. Not correct
2. Not correct
3. 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
4. Not correct

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