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Financial accounting is designed to measure directly the value of a business enterprise. Comment.

Financial accounting is designed to measure directly the value of a business enterprise. Comment.

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Expert Solution

Financial accounting is not designed to measure directly the value of a business enterprise.  Concepts Statement No. 1 indicates that financial accounting is not designed to measure directly the value of a business enterprise, but the information it provides may be helpful to those who wish to estimate its value.

Financial accounting doesn't directly measure a business's value but aids estimation according to Concepts Statement No. 1.

Junaid answered 8 months ago
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