Accounting should provide information that is useful in assessing the "value" of an entity; however, accounting information does not necessarily report the actual "value" of the entity.

Question

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Accounting information is used to provide relevant and reliable information to its users, including shareholders, investors, and stakeholders, for decision making. Its purpose is to report financial performance, financial position, and cash flows. While accounting information is helpful in assessing the value of an entity, it does not necessarily provide an accurate estimate of the entity's true value because it does not consider all factors that may affect the entity's worth, such as market trends, competition, and intangible assets.

Accounting Should Provide Information That Is Useful in Assessing the "Value