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If everyone involved in the process of accounting followed their own system or no system at all, there's no way to truly tell whether a company was profitable or not. Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just this one topic. Unless a company states otherwise, anyone reading a financial statement can make the assumption that the company has used GAAP.
If GAAP is not the principle used for preparing the financial statements, then a business needs to make it clear which other form of accounting they are using, and are bound to avoid using titles in its financial statements that could mislead the person examining it.

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Accounting has been defined, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: "facilitating the administration of economic activity.
This function has two closely related phases: 1) measuring and arraying economic data 2) communicating the results of this process to interested parties."
As an example, a company's accountants periodically measure the profit and loss for a month, a quarter, or a fiscal year and publish these results in a statement of profit and loss that's called an income statement.
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Software for Businesses

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If everyone involved in the process of accounting followed their own system or no system at all, there's no way to truly tell whether a company was profitable or not. Most companies follow what are called generally accepted accounting principles, or GAAP, and there are huge tomes in libraries and bookstores devoted to just this one topic. Unless a company states otherwise, anyone reading a financial statement can make the assumption that the company has used GAAP.
If GAAP is not the principle used for preparing the financial statements, then a business needs to make it clear which other form of accounting they are using, and are bound to avoid using titles in its financial statements that could mislead the person examining it.

Click here for more 
Accounting has been defined, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: "facilitating the administration of economic activity.
This function has two closely related phases: 1) measuring and arraying economic data 2) communicating the results of this process to interested parties."
As an example, a company's accountants periodically measure the profit and loss for a month, a quarter, or a fiscal year and publish these results in a statement of profit and loss that's called an income statement.
Click here for more 
Software for Businesses 
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By the end of the day, imagine the amount of money you have spent. Just think for a second. Some of you may not have spent much at all if anything.
The rest of us generally spend more than we need to, or at the very least, we spend more than we realize. This spending all adds up, sometimes to financial heights that incrementally zap our wallets. While it may not seem significant, this price analogy should stop potential disinterest:
People find it unsavory to purchase a thirty-dollar item each day, yet they spend thirty dollars incrementally, perhaps because they are not aware, not aware. They are not aware, for example, of their fixed spending (insurance, payments, bills.).
Simply put, everyday accounting helps to raise awareness. 
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Software for Businesses
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