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Accounting serves as the backbone of businesses and is a crucial area of study worldwide. It involves the intricate process of recording, summarizing, and analyzing financial transactions within a business. The multifaceted nature of accounting is evident in its various branches, each closely interlinked with the others.
Financial Accounting Focuses on creating financial statements for external stakeholders, such as investors and creditors. it Involves recording and summarizing transactions, and preparing statements like income statements and balance sheets.
Management Accounting is Concerned with providing internal management information for decision-making and planning. It Involves tools like budgeting, cost analysis, and performance evaluation to support managerial decisions.
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