Which Statement Below Best Describes the Objectives of Financial Accounting

question 8

Multiple Choice

Which statement below best describes the objectives of financial accounting?

• A)Provide information that helps predict cash flows.
• B)Provide information about the economic resources,claims to resources and changes in resources and claims.
• C)Provide information that is useful in making decisions.
• D)All of the above are correct.

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Definitions:

Six-month Moving Average

A method of smoothing data by calculating the average of six consecutive months' worth of data, continuously updated month by month.

Mean Absolute Deviation

A statistical measure of the average absolute deviations of a set of values from their mean, indicating variability within the dataset.

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models.

Exponential Smoothing

A time series forecasting method for smoothing data points by giving more weight to recent observations while exponentially decreasing the weights for older observations.