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What is the purpose of financial accounting?
What is the purpose of financial accounting?
- To manage day-to-day financial transactions
- To determine tax liabilities for individuals
- To track personal expenses and income
- To provide accurate and reliable information about a company's financial performance (correct)
What is the key function of accrual accounting?
What is the key function of accrual accounting?
- Reporting financial transactions at the end of the year
- Maintaining a record of fixed assets
- Recording transactions only when cash is received or paid
- Recognizing revenues and costs when they are earned or incurred (correct)
What do financial statements like Profit and Loss Account and Balance Sheet provide?
What do financial statements like Profit and Loss Account and Balance Sheet provide?
- Detailed transaction history of a company
- Information about employee salaries and benefits
- Overview of marketing strategies
- A snapshot of a company's financial performance and position (correct)
What does the dual aspect concept in accounting state?
What does the dual aspect concept in accounting state?
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How does accounting information benefit individuals?
How does accounting information benefit individuals?
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