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.

Comprehend the role of statutory and cost depletion in tax accounting.

Understand the effect of changes in income tax rates on income tax expense.

Identify the indicators of earnings quality through deferred tax assets and liabilities analysis.

Comprehend the principles governing taxable income.

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