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Post by account_disabled on Dec 12, 2023 9:25:33 GMT
Since I am a professor of the Costs subject, I would like to give it the importance it deserves: the most important thing is to know that the purpose of both is totally different. Financial Accounting The ultimate goal of Financial Accounting is to take a picture of the company and present its situation at a specific moment in time. The companies have their own and third-party financing that materializes in the acquisition of goods. That photo that is intended to show the company must always be made with the same criteria, rules Country Email List and principles. Surely it was the Treasury who created Financial Accounting, with the aim of taxing companies with the same criteria Therefore, the ultimate users. Of this Accounting will normally be third parties – either the Treasury or potential investors with the intention of investing (and for this they need to compare on equal criteria). That photo that we show is a photo from the past: it reflects what the company has done, the operations that it has carried out with the goods entrusted with the aim of obtaining profitability.
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