Why is accounting termed as a tool of management?

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1136448

2026-03-25 08:20

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Accounting is termed as tool of management as it is a reporting tool which gives info on the flow of funds. The Cash flow statements entail a detailed report on this. The fund flow statements prepared gives a good info on Sources and application of funds. Also the various ratiOS namely the Liquidity, Profitability and Current ratiOS give a detailed account on the organizational status. These are good tool for making a informed decision making.

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