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Such a accounting presents facts to existing, prospective and possible shareholders together with creditors such as vendors or financial institutions, financial analysts, economists and various authorities companies. Since these buyers or clientele have unique requirements and necessities, as well as the presentation of economic accounts is amazingly well prepared, planned, structured and matter to numerous far more rules than administration accounting. And this physique of policies that administers economic accounting in a very specified jurisdiction is named Generally Accepted Accounting Principles abbreviated as GAAP.
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