1. What is Accounting?: Accounting is the language of business; it is astandard set
of rules for measuring a company's financial performance. Assessing a company's
financial performance is important for:
The firm's officers (managers and employees)Investors
Lenders General
public
Standard financial statements serve as a "yardstick" of communicatingfinancial
performance to the general public.
2. Why is Accounting Important?: Enables managers to make corporatedeci- sions
Enables the general public to make investment decisions
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