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$1\mathrm{.}1$ Accounting Activities and Users

If a colleague asks you, as an accountaht, why accounting is considered a financial information system, what explanation might you offer?

It identifies economic events, records business activity to maintain a history, and communicates financial information in reports for analysis.

It identifies customer events, records customer activity to maintain a history, and communicates sales information in reports for analysis.

$$ It identifies economic events, analyzes those events, and communicates the results to management.

It identifies economic events, communicates to various users of financial information, and interprets findings for management decisions.

$$

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