What Is the Primary Purpose of Financial Accounting

question 111

Multiple Choice

What is the primary purpose of financial accounting?

• A)Determine the amount of tax liability owed to the government.
• B)Communicate business activities to internal management.
• C)Measure business activities and communicate those measures to external users to make decisions.

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Definitions:

Defibrillator Product

A medical device used to deliver a dose of electric current (shock) to the heart to treat life-threatening cardiac dysrhythmias.

Present Value

Today's value of a future money sum or cash flow sequence, calculated using a predetermined return rate.

Lifecycle

The series of stages that an entity—such as a product, project, or individual—goes through during its existence, from inception to termination or renewal.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a product or service.