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- Accounting is the art of measuring, communicating and interpreting financial activity.
- Financial accounting is one branch of accounting and involves processes by which financial information about a business is recorded, classified, summarized, interpreted, and communicated.
- By contrast management accounting information is used within an organization and is usually confidential and accessible only to a small group, mostly decision-makers.
- Tax Accounting is the accounting needed to comply with jurisdictional tax regulations.
- Accounting attempts to create accurate financial reports that are useful to managers, regulators, and other stakeholders such as shareholders, creditors, or owners.