why is accounting necessary Related: Finance & its Importance - Finance Functions, Accountancy and Financial management

Question

why is accounting  necessary Related:  Finance & its Importance - Finance Functions, Accountancy and Financial management

Answer

Accounting is very essential because it give information about financial position of the organization .and these information is very important for owners , investors, management, government , and stakeholders and other interested parties. Through accounting we come to know whether the firm is in the position to fullfills his obligation or not. It tell us about the whether the firm earns profit or not. There are many reasons through which we can say that accounting is must important.

Answer

Because it communicates so much of the information that owners, managers, and investors need to evaluate a company's financial performance. ... In fact, the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information.

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