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This sort of accounting offers info to present, future and prospective shareholders and creditors including vendors or banking companies, money analysts, economists and numerous federal government agencies. Since these shoppers or purchasers have different requirements and requirements, as well as presentation of economic accounts is extremely ready, planned, structured and subject matter to quite a few extra rules than management accounting. And this system of policies that administers financial accounting inside a specified jurisdiction known as Commonly Recognized Accounting Rules abbreviated as GAAP.

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