Accountancy, asked by shabirs3303, 1 year ago

Importance of object and principles in financial accounting

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Answered by NeilStringer52
0
Financial accounting principles shape the recording of nearly every business transaction in the business world. The creation of these principles is no small task and can sometimes seem nearly arbitrary. However, understanding the objectives of generally accepted accounting principles, or GAAP, provides insight into how these principles are created and makes it easier to remember accounting rules.basic objective of financial reportingand the creation of accounting principles is to help potential creditors and investors make investment and credit decisions. ... This allows thefinancial performance of these companies to be compared, which helps reduce uncertainty when making investment decisions.plz mark me as the brainliest
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