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This sort of accounting offers information and facts to existing, prospective and prospective shareholders and also creditors including sellers or banking companies, fiscal analysts, economists and many government organizations. Since these consumers or shoppers have diverse demands and demands, and the presentation of economic accounts is incredibly geared up, prepared, structured and issue to lots of extra rules than management accounting. Which body of principles that administers financial accounting in a specified jurisdiction is called Commonly Acknowledged Accounting Rules abbreviated as GAAP.

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