In accounting,emphasis is placed on determining net income.In finance,the primary emphasis also is on net income because that is what investors use to value the firm.However,a secondary consideration is cash flow because that's what is used to run the business.

Question

Quizplus · Accepted Answer

In finance, the primary emphasis is on cash flow because it determines a firm's ability to fund operations, invest, and return value to shareholders. Net income is important but considered secondary because it is an accounting measure that can be influenced by non-cash items.

In Accounting,emphasis Is Placed on Determining Net Income