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Accounting is the procedure of data entry, recording, summarizing, analyzing, and then reporting the data related to financial transactions of businesses and corporations. Fundamentals of accounting are guiding principles to perform such tasks. Operations of a business entity over an accounting period, generally a year, are keys to prepare financial statements. A company uses accounts to measure where it stands in the economic sense. They help in decision-making as well as cost planning and assessment. Above all, accounting reports are of utmost importance to outside entities as well, viz. the investors, creditors, and regulatory bodies.