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This kind of accounting provides information and facts to current, possible and prospective shareholders in addition to creditors for instance sellers or financial institutions, money analysts, economists and several authorities agencies. Since these buyers or consumers have various desires and demands, as well as the presentation of monetary accounts is extremely prepared, planned, structured and subject matter to a lot of much more rules than management accounting. And this entire body of rules that administers economical accounting inside a specified jurisdiction is named Normally Acknowledged Accounting Rules abbreviated as GAAP.

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