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Financial accounting is mainly done for giving information to people outside the organization. That is, the reports are meant for those who are interested in the business operation of the organization like the shareholders. The statements are prepared in strict compliance with the Generally Accepted Accounting Principles. These statements are set valid for a particular period of time and reflect the status of the business as a whole. The income statements, the balance sheet, the statement of cash flows and the statement of the shareholder’s equity are the essential documents in a financial statement. With the widespread use of software in businesses, financial accounting software has also found its place in most of the business organizations.

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