Take a moment to reflect on accounting practices in a business setting you are familiar with and discuss its three main financial statements. Explain why each statement is important and how accounting is an integral part of an organization. If an organization has less than optimal accounting practices, how will that affect their business model?
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Businesses use the accrual method for accounting purposes. This helps to ensure that the expenses and revenues are allocated to the period in which they are incurred. The three main financial statements of any business are the income statement, balance sheet and statement of...
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