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Government bodies review the statements to make sure they comply with all regulations and to make sure no ethical issues are present. Obviously the upper management uses the financial statements to gain a prospective on how the company is doing. Competitors may use the financial statements as a way to improve their own company.
Aii) The accrual basis of accounting provides a better measure of current performance because it takes into account the company’s accomplishments and resource sacrifices during the period, no matter when the cash is received or paid. Accrual based accounting provides a more accurate picture of a company’s current condition...
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