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Accounting

Definition: Accounting is a field that is responsible for generating financial reports about a company's performance and financial health.  These reports are used both in-house and by outside parties.

Advice: When it comes to investing, accounting is one of the most important fields to learn because it's important to be able to read financial statements.  Accounting in the US follows Generally Accepted Accounting Principles (GAAP).  Managerial accounting is used by people within the company to make financial decisions, while financial accounting is typically used by outside investors and lenders.

 

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