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Accounting Data and Business Decisions

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Please explain 2 ways in which accounting data are used to make business decisions.

Explain at least three related accounting terms or theories.

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This solution discusses how accounting data is used to make business decisions.

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Please explain 2 ways in which accounting data are used to make business decisions.

There are ways in which accounting data may be used to make business decisions. One way is by providing vital information regarding the status of an organization's finances. Accounting data enables the management to know how well or poorly the organization is doing, helping them thus make appropriate decisions that can steer the organization into profitability (Chapter Two, n.d.).

Accounting data is also used to make business decisions on the part of the clients that the ...

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