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Previously accounting largely acted because the memory with the businessperson as well as in that time audience for the account was the history keeper or the proprietor alone. But With all the increasing growth of joint inventory companies developed larger sized variety of audiences for accounts, simply because buyers devoid of firsthand acquaintance of their functions relied on accounts to provide the important details.

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The event resulted in a break up of accounting programs for inner accounting or management accounting and external also called monetary accounting.

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