In Accounting, Emphasis Is Placed on Determining Net Income in Accordance

question 3

True/False

In accounting, emphasis is placed on determining net income in accordance with generally accepted accounting principles.In finance, the primary emphasis is also on net income because that is what investors use to value the firm.However, a secondary financial consideration is cash flow, because cash is needed to operate the business.

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Definitions:

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Internal Consistency

The degree to which items in a psychological test measure the same construct, indicating the reliability of the test.

Achievement Motivation

The driving force behind striving to succeed or meet standards of excellence.

Statistical Analysis

The process of collecting, analyzing, interpreting, and presenting data to uncover underlying patterns and trends.