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What is the definition of accounting?

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Final answer:

Accounting is the process of preparing financial statements based on GAAP principles to assess an organization's financial status and aid decision-making.


Explanation:

Accounting is the process of recording, classifying, and summarizing economic events to prepare financial statements based on generally accepted accounting principles (GAAP). These statements provide a snapshot of an organization's financial health and performance, helping stakeholders make informed decisions. Financial statements include the income statement, balance sheet, and cash flow statement.


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