MANAGEMENT

Detailed explanation-1: -More Financial Stability Accurate accounting helps your business create and control company budgets to know when and how money comes and goes from your business. It can also help you plan for enough cash reserves to see you through a cash crunch.

Detailed explanation-2: -Financial accounting results in the determination of net income at the bottom of the income statement. Assets, liabilities and equity accounts are reported on the balance sheet. The balance sheet utilizes financial accounting to report ownership of the company’s future economic benefits.

Detailed explanation-3: -Which of the following is not true of generally accepted accounting principles? GAAP does not have substantial authoritative support.

Detailed explanation-4: -Owners – Owners use the accounting information for analyzing the viability and profitability of their investments. Accounting information enables the owners to assess the ability of the business organization to pay dividends.