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For which step of the accounting process do accountants of a business entity prepare financial statements?
  • a)
    Identification of economic event
  • b)
    Communication of financial information
  • c)
    Recording financial information
  • d)
    Making decisions about business
Correct answer is option 'B'. Can you explain this answer?
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For which step of the accounting process do accountants of a business ...
Accountants prepare financial statements to communicate financial information. This is a crucial step as it involves presenting financial data to external users like investors and creditors.
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For which step of the accounting process do accountants of a business entity prepare financial statements?a)Identification of economic eventb)Communication of financial informationc)Recording financial informationd)Making decisions about businessCorrect answer is option 'B'. Can you explain this answer?
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