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Exam IIA-CIA-Part3 topic 2 question 31 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 31
Topic #: 2
[All IIA-CIA-Part3 Questions]

Which of the following statements is true regarding managerial accounts?

  • A. They must be prepared at least on a monthly basis.
  • B. They should be verifiable by external auditors.
  • C. They should be easily understandable by all management team members.
  • D. They should exclusively meet the needs of the user.
Show Suggested Answer Hide Answer
Suggested Answer: B 🗳️

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KonradK
11 months, 4 weeks ago
Selected Answer: D
It's D!
upvoted 1 times
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Ishaku
3 years, 5 months ago
It can't be B
upvoted 1 times
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superman26
3 years, 7 months ago
A is wrong because MA prepared as needed B is wrong because financial accounting is verifiable by the external auditor D is wrong because should be inclusively i guess the answer is C.
upvoted 1 times
yomang
3 years, 6 months ago
I think it's 'D'. When it says the word 'exclusively', I think it's saying that it's only talking about the user (not excluding them - it means excluding everyone else but the users). This article pretty much sums it pretty good. A is wrong because it should be prepared as needed. B is wrong because it's not for outsiders. C is wrong because not all management members may have accounting-knowledge but they are involved in the managerial process. But 'D' is pretty much stated verbatim in the article that it SHOULD MEET THE NEEDS OF THE USER.
upvoted 3 times
yomang
3 years, 6 months ago
here's the article: https://www.investopedia.com/terms/m/managerialaccounting.asp#:~:text=Because%20managerial%20accounting%20is%20not%20for%20external%20users%2C,a%20percentage%20of%20units%20produced%20in%20the%20period.
upvoted 2 times
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C (25%)
B (20%)
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