Improvements in Financial Reporting and Management Accounting

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What is the main goal of efforts to improve reporting rules in accounting?

To make accounting policies more comparable and transparent (correct)

To reduce the amount of information provided to managers

To make financial reports more complex

To prioritize internal over external information

How has management accounting changed its focus?

It has remained the same

It has become more inward-looking

It is no longer relevant

It has become more outward-looking (correct)

What do successful businesses use to gauge competitiveness?

Financial reports of rival businesses

Information about the costs and profits of rival businesses (correct)

Information about their own customers

Benchmarks from industry averages

Why do businesses need to manage costs?

To compete successfully Signup and view all the answers

What type of information is now being produced in management accounting?

Details of customers and the market Signup and view all the answers

Why are businesses becoming more customer driven?

To maintain competitive advantage Signup and view all the answers

When deciding whether to lend money to a company, what is an important factor to consider?

The company's ability to pay interest and repay the principal sum Signup and view all the answers

What is a key aspect of evaluating a company's performance?

Comparing performance to earlier plans or benchmarks Signup and view all the answers

Why is it essential to evaluate a company's financial flexibility and resources?

To determine its ability to take on new challenges Signup and view all the answers

What do owners consider when deciding on rewards for senior managers?

The company's financial performance and position Signup and view all the answers

What might competitors of PI do when evaluating their own performance?

Try to assess PI's financial strength Signup and view all the answers

What might employees of PI consider when deciding whether to continue working for PI?

The company's future plans and profits Signup and view all the answers

What is a key aspect of financial analysis for investment analysts?

Evaluating a company's likely risks and returns Signup and view all the answers

What might suppliers consider when deciding whether to supply PI on credit?

PI's ability to pay on due dates Signup and view all the answers

Why is accounting viewed as a form of service?

Because it provides a form of service to stakeholders Signup and view all the answers

What is a key consideration for investors when deciding whether to invest in PI?

The company's financial strength Signup and view all the answers

What might be an aspect of PI's performance that competitors use as a benchmark?

PI's financial strength Signup and view all the answers

What might government agencies consider when deciding whether to provide economic support for PI?

PI's ability to provide employment Signup and view all the answers