A: Communication of Financial Health - Accounting provides a structured way to communicate a company's financial position, performance, and cash flows, enabling stakeholders such as investors, management, and creditors to make informed decisions.
B: Standardized Reporting - Accounting follows established principles and standards (like GAAP or IFRS) that ensure consistency and comparability of financial information, making it easier for businesses to communicate their financial status to external parties.
C: Performance Measurement - Accounting helps track and analyze a company's financial performance over time through various metrics and reports, providing crucial insights into profitability, efficiency, and overall business health, which can influence strategic decisions.