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_____________ Theory suggests that organizations use materials from the environment, create something with those materials, and return the products to the environment in a dynamic fashion.
External Users
Individuals or entities outside of a company who use its financial information to make decisions, such as investors, creditors, and regulatory agencies.
Financial Accounting Information
The collection of financial data and statements that companies use to report their financial performance to external parties.
Creditor
An individual or institution that lends money or extends credit, expecting repayment in the future.
Basic Accounting Equation
The Basic Accounting Equation is the foundational principle of double-entry bookkeeping, stating that Assets = Liabilities + Equity, maintaining the balance of a company's financial statements.
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