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There are four basic statements that accounting provides: the Balance Sheet, the Cash Flow Statement, the Owner's Equity Statement, and the Income Statement. These four reports provide the perspective of how the organization is maintaining financially. The basis of many decisions will stem from how profitable an organization is and thus it can be tempting to increase the bottom line so the company looks better on paper than what the situation is in actuality. The importance of accounting is that it gives investors the confidence in making a well informed decision and though the accounting reports don't equate to a sure thing these reports aid in the flow of business...
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