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Ethics, Accounting, and Business

-Identify two reasons why accounting is important for business. Justify your selections.

-Evaluate the importance of ethics in accounting. Defend your evaluation.

-Analyze the importance of having a good understanding of accounting. What implications does a lack of understanding have for business?

-Determine the best way to explain accounting to a non-accountant.

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Solution Preview

Accounting is extremely important for any business due to various reasons. First of all, accounting helps in keeping track of the progress of any business, .e, whether or not the firm is making profit or making best possible use of its limited resources. Accounting helps in keeping track of expenses and helps in allocating limited resources in the best possible manner. Accounting is very important from a compliance perspective as firms have to comply with laws, regulations and compliance related issues pertaining to financial accounting and reporting, taxation, etc. Non compliance with laws can attract severe penalties and fines for the firm.

Ethics is extremely ...

Solution Summary

The solution identifies why accounting is important for business. The ethics for accounting are analyzed. The solution helps non-accountants understand accounting.