Which of the Following Is the Primary Focus of Financial

question 179

Multiple Choice

Which of the following is the primary focus of financial accounting?

• A) providing information that managers need to make operational decisions
• B) providing summarized information on operational results to investors and creditors
• C) providing information to managers to assist in planning, directing and controlling operations
• D) providing highly detailed information on product lines, regions, and divisions

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Definitions:

Mutual Mistake

Mistake as to the same material fact on the part of both parties to a contract. In this situation, either party can cancel the contract.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.

Undue Influence Rule

A legal principle that voids contracts or agreements if one party has been unjustly persuaded or coerced by another, compromising their free will.

Duress Rule

A legal principle that negates the validity of an agreement if it was made under coercion or threat of harm.