CHAPTER 16 - CHAPTER 16 UNDERSTANDING ACCOUNTING AND...

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CHAPTER 16 UNDERSTANDING ACCOUNTING AND FINANCIAL STATEMENTS Accounting is the process of measuring, interpreting, and communicating financial information to support internal and external business decision making. Open book management- sharing sensitive financial information with employees and teaching them how to understand and use financial statements -Viewing financial information may help them better understand how their work contributes to the company's success - Outsiders use financial data to evaluate investment opportunities Business Activities involving Accounting a. Financing activities provide necessary funds to start a business and expand it after it begins operating b. Investing activities provide valuable assets required to run a business c. Operating activities focus on selling goods and services, but they also consider expenses as important elements of sound financial management Accounting Professionals
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CHAPTER 16 - CHAPTER 16 UNDERSTANDING ACCOUNTING AND...

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