How to determine the financial reports of businesses, Financial Accounting

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How to Determine the financial reports of businesses

In response to criticisms that financial reports of some businesses aren't clear enough to users, accounting rule makers have tried to improve reporting rules to make sure that accounting policies of businesses are more comparable and more transparent and they portray economic reality more faithfully. When this has had a generally beneficial effect, recent accounting scandals have highlighted limitations of accounting rules in protecting investors and others.

 


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