Answer:
Eliminates the need for interpreting financial data
Explanation:
Accounting does not eliminate the need for interpreting financial data rather accounting data is to be interpreted and understood to make informed decisions.
Answer:
1. Eliminates the need for interpreting financial data
Explanation:
A simple definition of acccounting is the systematic way of identification, measurement, classification, summarizing, interpretation and communication of economic data or financial data for decision making purposes.
Interpretation of finanacial data as itemized in the process of accounting is very important because, non-accounting oriented users of financial information must understand the data and figures produced by a financial statement, hence, the interpretation of the statement is very useful to the use of such statements for decision making purposes.
For instance, the Chief Executive Officer (CEO) of an organisation may not have any financial inclination and as such, the accountant or the Chief Finance Officer (CFO) has the responsibility to explain the implication of the level of assets, liability, profit or losses recorded in the statements to the company.
