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The definition of financial accounting ... financial reporting is a method for generating reports on your business and financial statements that may be required by your bank or state or for tax ...
Financial accounting is a branch of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. [1] This involves the preparation of financial statements available for public use.
Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. [1] [2] Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. [3]
Financial management is the business function concerned with profitability, expenses, cash and credit. These are often grouped together under the rubric of maximizing the value of the firm for stockholders .
The accounting equation is the mathematical structure of the balance sheet. It relates assets, liabilities, and owner's equity: Assets = Liabilities + Equity (in financial accounting, the term equity, not Capital, is used) Liabilities = Assets − Equity Equity = Assets − Liabilities. Assets are reported on the balance sheet. [11]
Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently." [2] Financial statements may be used by users for different purposes:
One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers. [2] In other words, management accounting helps the directors inside an organization to make decisions. This can also be known as Cost Accounting.
Financial analysis (also known as financial statement analysis, accounting analysis, or analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business, project or investment.