I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

QUESTION 

    

Information for managers

 

Which of the following is most useful for managers? 

A 

Financial statements for the last financial year 

B 

Tax records for the past five years 

C 

Budgets for the coming financial year 

D 

Bank statements for the past year  

ANSWER 

The correct answer is C. Managers need to look forward and make plans to keep the business profitable. 

Therefore the most useful information for them would be the budgets for the coming financial year. 

 

In addition to management information, financial statements are prepared (and perhaps published) for 

the benefit of other user groups, which may demand certain information. 

(a) The 

national laws of a country may provide for the provision of some accounting information for 

shareholders and the public. 

(b)