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This sort of accounting offers facts to existing, future and likely shareholders and creditors such as sellers or banks, financial analysts, economists and various authorities agencies. Since these individuals or customers have different needs and prerequisites, plus the presentation of financial accounts is incredibly well prepared, prepared, structured and subject matter to a lot of extra policies than management accounting. And this physique of procedures that administers financial accounting within a specified jurisdiction is termed Typically Accepted Accounting Ideas abbreviated as GAAP.
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