Economic events or transactions that have been

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Economic events or transactions that have been identified and measured are then maintained systematically through recording process. In order to be useful in making decisions, recorded data must be classified and summarised. Finally, classified and summarised accounting data need to be communicated to the potential users of the information. The communication process consists of placing accounting information into financial reports and preparing interpretive disclosures necessary to make the date understandable. For accountants to be able to help users of the reports to make economic decisions effectively, the accountants who prepare the reports must have a full appreciation of who the users are and their needs for accounting information. In conclusion, it is a misunderstanding that accounting is all about numbers. Many people with limited knowledge of accounting tend to view accounting as limited to recording numbers and do not comprehend the whole processes involved in accounting as described above, which requires extensive training, business experience and professional judgment rather than merely calculating numbers.
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