The Primary Objective of Financial Accounting Is

question 4

Multiple Choice

The primary objective of financial accounting is

• A)profitability analysis.
• B)providing information for management decision making.
• C)cost planning and cost controls.
• D)reporting to investors,creditors,and government authorities.

---

Definitions:

Average Tax Rate

The percentage of total income paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.

Tax Schedule

A chart or list that outlines the rates of taxation for different levels of income or types of taxpayers.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, demonstrating the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The income subject to taxes after deductions and exemptions.