Answered: (GAAP) a

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 2EA: Identify the following as True or False: Managerial accounting reports must comply with the rules...

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Part 1

No. Although GAAP applies to internal accounting reports, managers rarely use it to develop management accounting systems.

Yes. GAAP applies only to internal accounting reports. Therefore, managers must develop management accounting systems to comply with GAAP.

No. GAAP applies to financial reporting for external users. Internal accounting reports are not restricted by GAAP.

Yes. GAAP applies to internal accounting reports as well as financial reporting for external users. Managers must use GAAP in the development of all accounting systems.

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