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Accounting is referred to as the art of recording, collecting, summarizing and presenting the transactions. The branch of accounting dealing with the recording and summarizing the transactions of financial nature is known as the financial accounting, in order to get them presented in the books of financial accounts including the balance sheet or the income statement. As per the accounting standards, the financial accounting has several common rules, which are used by a number of individuals in their desired ways. Reliability, comparability, relevance and understand ability are the four qualities of the financial accounting.
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