Why is accounting important? Who governs accounting? How consistent is accounting among companies in the same industry? Can you show an example of where accounting rules may be applied differently and yet consistent with GAAP? Why do we care as a society about accounting rules? Show by way of example what happens when a company does not follow legitimate accounting practices.
Explain the value of financial ratios and why they are important? How are they used by companies, by investors, by analysts?
Please respond to each part of this multi-part discussion topic.
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