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This sort of accounting offers facts to existing, future and likely shareholders along with creditors for example sellers or banks, financial analysts, economists and a variety of govt agencies. Because these customers or purchasers have various demands and prerequisites, plus the presentation of financial accounts is incredibly ready, planned, structured and subject matter to a lot of far more policies than administration accounting. And this system of regulations that administers economic accounting in a specified jurisdiction is termed Generally Acknowledged Accounting Concepts abbreviated as GAAP.
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