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They hire employees, pay salaries and benefits. All of these "business" activities need to be measured, analyzed, and recorded. Accounting is the set of procedures used to analyze, measure and record said activities. For this reason, accounting is often referred to as the "language of business". Within the accounting realm, there are two main types: financial accounting and managerial accounting.
Financial accounting generally abides by the GAAP to record the activities of a business and to report the results of a business's operations. Every transaction that occurs, both big and small, are recorded as an entry in a journal, and each type of activity is given an account in a general ledger (i...
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Common topics in this essay:
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