What Is the Primary Purpose of Financial Accounting

question 85

Multiple Choice

What is the primary purpose of financial accounting?

• A)Determine the amount of tax liability owed to the government.
• B)Communicate business transactions to internal management.
• C)Measure business transactions and communicate those measures to external users to make decisions.
• D)Measure the profitability of the company in order to assist employees with making decisions.

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Definitions:

Logistic Regression

A statistical method used for modeling the outcome of a binary dependent variable based on one or more predictor variables.

Test Statistic

A value calculated from sample data to evaluate a hypothesis in statistics.

Wald Statistic

A statistic used to test the significance of individual coefficients in the context of a larger model.

Lactic Acid

An organic compound produced in muscles during intense activity and in fermentation processes, associated with muscle fatigue and sour tastes.