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Which of the following statement(s) is/are true? (Select the correct answer from those listed below the following statements). (1) Financial accounting information is primarily for internal users, and uses any language for its reporting (2) Management accounting information is normally produced in a timely and accurate manner for internal decision-making (3) Management accounting information can be communicated using any language 2 and 3 only 1 and 2 only 1 and 3 only None of the above

Question

Which of the following statement(s) is/are true? (Select the correct answer
from those listed below the following statements).
(1) Financial accounting information is primarily for internal users, and uses any
language for its reporting
(2) Management accounting information is normally produced in a timely and
accurate manner for internal decision-making
(3) Management accounting information can be communicated using any
language
2 and 3 only
1 and 2 only
1 and 3 only
None of the above

Which of the following statement(s) is/are true? (Select the correct answer from those listed below the following statements). (1) Financial accounting information is primarily for internal users, and uses any language for its reporting (2) Management accounting information is normally produced in a timely and accurate manner for internal decision-making (3) Management accounting information can be communicated using any language 2 and 3 only 1 and 2 only 1 and 3 only None of the above

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YorkMaster · Tutor for 5 years

Answer

2 and 3 only

Explain

## Step1: <br />Assess statement (1) Financial accounting information is primarily for internal users and uses any language for its reporting. <br />This statement is not true because financial accounting information is prepared for external users such as investors and government agencies, rather than for internal users who primarily use managerial accounting information. Moreover, financial accounting information should adhere to generally accepted accounting principles (GAAP) and does not use any language for its reports; it must use the language of standard accounting principles.<br /><br />## Step2: <br />Assess statement (2) Management accounting information is normally produced in a timely and accurate manner for internal decision-making. <br />This statement is true. Management accounting provides detailed and precise information required for internal decision-making at frequent intervals, so timeliness and accuracy are essential.<br /><br />## Step3: <br />Assess statement (3) Management accounting information can be communicated using any language. <br />This statement is true as well. Management accounting information is internally oriented so it can be presented in any language or format that is useful for management’s decision-making. It does not have to conform to the standards of GAAP since its use is restricted within the organization.
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