Financial accounting is a subset of accounting that entails the process of recording, summarizing, and reporting the plethora of transactions that occur as a result of corporate operations over time. These activities are summarized in financial statements, which include the balance sheet, income statement, and cash flow statement. These statements reflect the company’s operating performance over a specific time period.
Financial accountants can find work in both the public and private sectors. The responsibilities of a financial accountant may differ from those of a general accountant, who works independently rather than for a corporation or organization.
Financial accounting is based on a set of widely accepted accounting concepts. The accounting principles that are used in financial accounting are determined by the regulatory and reporting obligations that the organization must comply with. Businesses in the United States of America are expected to maintain financial records in conformity with widely accepted accounting principles (GAAP).
The purpose of establishing these accounting rules is to ensure that investors, creditors, regulators, and tax authorities receive uniform information.
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Topics in Financial Accounting
Our experts can help you with a variety of financial accounting topics, including the following:
- Corporate finance is the study of how organizations structure their capital, fund their operations, and make investment decisions.
- Bookkeeping is the process of regularly recording a business’s financial transactions.
- Financial statement analysis: Financial statement analysis is the process of obtaining and evaluating information from income statements, balance sheets, and other financial statements.
- Accounting Equation
- Current and Noncurrent Assets
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