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Such a accounting delivers information to existing, potential and likely shareholders and also creditors which include distributors or banking institutions, economic analysts, economists and several govt organizations. Considering that these people or clientele have different needs and specifications, plus the presentation of economic accounts is incredibly prepared, planned, structured and subject matter to several much more principles than management accounting. Which physique of policies that administers financial accounting inside a specified jurisdiction is called Frequently Accepted Accounting Concepts abbreviated as GAAP.
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