Financial accounting has an impact on everyday business decisions as well as wide-ranging economic consequences.

Question

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Financial accounting provides important financial information about a business, which is used by decision makers within the business to make informed decisions. This information also impacts investors, creditors, and other stakeholders, as it can affect their investment and lending decisions. In the wider economy, financial accounting information is used to analyze trends, make forecasts, and inform policy decisions. Therefore, financial accounting has both practical and far-reaching consequences.

Financial Accounting Has an Impact on Everyday Business Decisions as Well