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A Typical AIS Has Two Principal Objectives: (1)to Provide All

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A typical AIS has two principal objectives: (1)to provide all the financial information internally needed by management for business decision-making,known as management accounting; and (2)to provide financial information to various external users concerned with the financial activities of the organization,known as financial accounting.


Definitions:

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by and distributions to shareholders.

Net Working Capital

The difference between a firm's current assets and its current liabilities, indicating the short-term financial health and working capital efficiency of the business.

Total Assets Ratio

A financial metric that compares the value of a company's total assets to another relevant value, often used in financial analysis to gauge company size or efficiency.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating its financial health.

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