Which of the following best describes the purpose of accounting? O A. To compute the profit or loss and declared dividend of a business firm. OB. To provide stakeholders with information they need to make good financial decisions. OC. To allow the government to track business activity levels. OD. To meet the legal requirements of GAAP. QUESTION 38 Even though a new company may be recognized as strong and very likely to make a profit, success is not guaranteed. The new company may seek financial help from a special type of organization that is interested in becoming invested in the new company. What is the primary question the investment organization hopes to answer before investing in the new company? A. To what extent will the new company's operations be based on global trade, and how will importing operations compare to exporting operations? B. What is preventing the new company from charging higher prices? OC. Does the new company rely more heavily on Cl than CPI, and what are the implications of doing so? OD. What is the likelihood our investment will return value to us that is equal to and greater than our original investment? QUESTION 39 Which of the following will probably not help a company improve its cash flow? A. Offer discounts to customers for paying early. OB. Take advantage of special payment terms from vendors. C. Be more aggressive in paying accounts receivable. OD. Raise prices on products and services offered to customers