Normalizing accounting data refers primarily to eliminating errors and outliers, thus creating "normal data."

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Normalizing accounting data primarily involves adjusting financial statements to facilitate comparison either over time or between companies. It is not solely about eliminating errors and outliers, but also about making adjustments for differences in accounting practices, inflation, or other factors that affect financial analysis.

Normalizing Accounting Data Refers Primarily to Eliminating Errors and Outliers