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Accounting:
Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books. While accounting is certainly a major part of an organisation's financial management framework, accounting is mainly viewed as a method of recording.
Accounting is the process of identifying, measuring and communicating financial information.
Broken down, these elements can be explained as follows:
Accounting can be divided into many areas, however for the purposes of this module we will focus on two major subsets of accounting, namely Financial Accounting and Management Accounting.
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