6. Which of the following statements is NOT true? A) Financial accounting reports are aimed at internal users of accounting information while management accounting reports are aimed at external users of accounting information. B) Financial accounting summarizes accounting data while management accounting breaks down costs into their detailed components. C) Financial accounting reports report on what has happened while management accounting reports focus on current activity and future projections. D) Financial accounting reports are used by investors to make investment decisions while management accounting reports are used by managers to make business decisions. 11. Financial Gearing (leverage) occurs when a business is financed by contributions from borrowings. Which of the following statements is TRUE about financial gearing? A) Gearing reduces the risk to shareholders. B) Gearing is beneficial to shareholders because interest payments to lenders are tax- deductible. C) Gearing involves the company taking loans that are an Internal source of finance. D) Gearing always includes loans which are at very high interest rates. 12. Retained Earnings represent a very important source of finance for companies. Which of the following statements is true about Retained Earnings? A) Retained earnings represent a free source of funds. B) No Issue costs are incurred and the amount raised is certain. C) Retained Earnings represents a very good external source of finance. D) Retained Earnings are a form of short-term finance