In accounting, emphasis is placed on determining net income. In finance, the primary emphasis is also 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 rather than net income, as cash flow is crucial for valuing a firm and ensuring its operations, while net income is more of an accounting measure.

In Accounting, Emphasis Is Placed on Determining Net Income