Financial Accounting

Financial Accounting

Financial accounting includes information disseminated to parties that are not part of the enterprise proper—stockholders, creditors, customers, suppliers, regulatory commissions, financial analysts, and trade associations—although the information is also of interest to the company’s officers and managers. Such information relates to the financial position, liquidity (that is, ability to convert to cash), and profitability of an enterprise.

Accounting Information

Accounting information can be classified into two categories: financial accounting or public information and managerial accounting or private information. Managerial accounting deals with cost-profit-volume relationships, efficiency and productivity, planning and control, pricing decisions, capital budgeting, and similar matters. Read about Managerial Accounting here

More Accounting Entries

Accounting information can be classified into two categories: financial accounting or public information and managerial accounting or private information. Read about Financial Accouting here.

Specialized Accounting

Of the various specialized areas of accounting that exist, the three most important are auditing, income taxation, and nonbusiness organizations. Auditing is the examination, by an independent accountant, of the financial data, accounting records, business documents, and other pertinent documents of an organization in order to attest to the accuracy of its financial statements. Read about Auditing here

The second specialized area of accounting is income taxation. Read about income taxation here

A third area of specialization is accounting for nonbusiness organizations, such as universities, hospitals, churches, trade and professional associations, and government agencies. Read about accounting for nonbusiness organizations here

Financial Reporting

Traditionally, the function of financial reporting was to provide proprietors with information about the companies that they owned and operated. Read about financial reporting here

Accounting Principles

Accounting as it exists today may be viewed as a system of assumptions, doctrines, tenets, and conventions, all encompassed by the phrase “generally accepted accounting principles.”Read about accounting principles here

The Balance Sheet

Of the two traditional types of financial statements, the balance sheet relates to an entity’s position, and the income statement relates to its activity. The balance sheet provides information about an organization’s assets, liabilities, and owners’ equity as of a particular date (such as the last day of the accounting or fiscal period). Read about income balance sheet here

The Income Statement

The traditional activity-oriented financial statement issued by business enterprises is the income statement.

Regulations and Standards in the United States

Until 1973, accounting principles in the United States had traditionally been established by certified public accountants. Read about Accounting Regulations and Standards in the United States

Source: “Accounting and Bookkeeping”Microsoft® Encarta® Online Encyclopedia

See Also

Bookkeeping in the World

Literature Review on Financial Accounting

In the Encyclopedia of Public Administration and Public Policy, [1] Mozaffar Khan offers the following summary about the topic of Financial Accounting: Financial accounting is a vast and vibrant field. Accounting practice (both for business and for government) is constantly evolving to meet changing needs, and accounting research is gaining rigor in theory as well as sophistication in empirical methods. It is impossible to understand the culture and environment of financial management without understanding financial accounting.

Resources

Notes and References

  1. Entry about Financial Accounting in the Encyclopedia of Public Administration and Public Policy (2015, Routledge, Oxford, United Kingdom)

See Also

Further Reading

  • Global Encyclopedia of Public Administration, Public Policy, and Governance (2018, Springer International Publishing, Germany)

Hierarchical Display of Financial accounting

Business And Competition > Accounting > Accounting

Financial accounting

Concept of Financial accounting

See the dictionary definition of Financial accounting.

Characteristics of Financial accounting

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Resources

Translation of Financial accounting

Thesaurus of Financial accounting

Business And Competition > Accounting > Accounting > Financial accounting

See also

  • Profit margin
  • Mark-up
  • Commercial accounting

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