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What is Accountancy Answer about?
External users of accounting information include investors, creditors, government, suppliers, customers, and employees who rely on financial data for decision-making. Accounting is referred to as the language of business as it conveys financial information to stakeholders. Major drawbacks of historical accounting include the recording of assets at original cost, neglecting current market value and inflation, and providing potentially outdated information for decision-making.
- Author
- vijayalakshmi070605
- Language
- EN