What is accounting, what are its types, and how are they useful in various situations?

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Accounting is the process of recording, summarizing, and analyzing financial transactions of a business. Types include financial, management, tax, and forensic accounting.

Financial accounting involves preparing financial statements for external stakeholders like investors and creditors.
Management accounting focuses on providing internal stakeholders like managers with financial information to make decisions.
Tax accounting deals with tax-related matters such as tax planning and compliance.
Forensic accounting involves investigating financial discrepancies and fraud.
Accounting is useful in budgeting, decision-making, performance evaluation, and compliance with regulations.
For example, financial accounting helps investors assess the financial health of a company, while management accounting helps managers make strategic decisions based on cost analysis.

What is accounting, what are its types, and how are they useful in various situations?

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