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State the Accounting as an information system
We know that accounting can be seen as provision of a service to 'clients'. Another way of viewing accounting is as a part of business's total information system. Users, both outside and inside the business, have to make decisions concerning allocation of scarce economic resources. To make sure that these resources are efficiently allocated, users need economic information on which to base decisions. It's the role of accounting system to provide that information and this would involve information gathering and communication.
are the notes to the financial statements part of the financial reporting
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