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

question 48

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:

Quantitative Changes

Alterations that can be measured or counted, often referring to changes in number, volume, or frequency.

Cognitive Processing

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Control Strategies

Techniques or methods implemented to manage, regulate, or influence a process, situation, or system effectively.

Cognitive Processing

The mental action or method of acquiring knowledge and understanding through thought, experience, and the senses.