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Financial accounting and users of financial accounting

How would you describe financial accounting? Select two users, one internal and one external, who you think benefit the most from accounting. Explain why and how you think they benefit.

Solution Preview

If you are a business man then you willing to know the business profit or loss. But how ?
It is only possible that if you have kept the records correctly. Now question arises how you can keep records?
So the problem now will solve by accounting.

By definition

" The art of recording, classifying and summarizing the business transactions and finally prepare
the financial statements."

"Accounting) is the process of maintaining, auditing, and processing financial information for
business purposes."

Recording
Transactions must be recorded as they occur in order to provide up-to-date information
for management.

Summarizing
The transaction for a period are summarised in order to provide information about the
company to interested parties.

Financial Accounting emphasizes ...

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