Inventory Accounting Question:
Why financial accounting necessary?
Answers:
Answer #1Yes, the accounting calculates the cost of capital to the business. It compares the current, expected, and historic rates of return. Suppose a company is making 12% returns but borrowing money by using the owner's credit card at 22% be good to know that.
Answer #2Financial Accounting helps in taking financial decisions such as investment, circulation of monies, banking etc due to the information or statements it provides at the end of the period.
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