In Accounting,emphasis Is Placed on Determining Net Income

question 30

True/False

In accounting,emphasis is placed on determining net income.In finance,the primary emphasis also is on net income because that is what investors use to value the firm.However,a secondary consideration is cash flow because that's what is used to run the business.

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Definitions:

Accounting Systems

Procedures and systems used by a business to keep track of its financial transactions and prepare financial statements.

Double-Entry

An accounting method of recording transactions that provides an equality of debits and credits. Using the double-entry.

Single-Entry

A simple bookkeeping or accounting method where transactions are recorded only once, either as income or expense.

Pegboard

A manual bookkeeping system that uses a lightweight board with pegs on the left side and often on the top and right side too. Components of the pegboard system include a physician’s day sheet, transactions slip, patient ledger card, and deposit slip.