The Primary Functions of Financial Accounting Are to Measure Business

question 59

True/False

The primary functions of financial accounting are to measure business activities of a company and to communicate those measurements to internal parties for decision-making purposes.

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Definitions:

Incidental Damages

Financial compensation for reasonably associated losses stemming from a breach of contract, aside from direct damage costs.

Inspecting

The process of examining something carefully in order to ascertain its condition, quality, or compliance with certain standards or regulations.

Lost Profits

Financial gains that could have been earned but were not due to a breach of contract or other wrongful act.

Consequential Damages

Compensation for losses not directly caused by a breach of contract but resulting as a foreseeable consequence of the breach.