ULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the estion. What is the primary purpose of financial accounting? A) Measure the profitability of the company in order to assist employees with making decisions. B) Determine the amount of tax liability owed to the government. C) Communicate business activities to internal management. D) Measure business activities and communicate those measures to external users to make decisions. 2) The form of business organization that is legally separate from its owners is a: B) Partnership. A) Corporation. D) Sole proprietorship. C) Separation entity. 3) Transactions related to the primary business activities of the company, such as sell goods and services to customers, are referred to as: B) Operating activities. A) Financing activities. D) Investing activities. C) Management activities. referred to as: B) Expenditure activities. A) Operating activities. D) Financing activities C) Investing activities. Transactions of a company involving extennal sources of funding are referred to as B) Operating activities. A) Financing activities. D) External activities. C) Investing activities. 6 The accounting equation is defined as: A) Net Income Revenues Expenses. B) Liabilities Revenues Assets. C) Assets Liabilities Stockholders' Equity. D) Assets Liabilities t Stockholders' Equity. The accounts that represent the resources of the company are called: D) Revenues B) Liabilities. C) Assets. A) Expenses