What is Financial Accounting?
Financial Accounting is a specialized branch of accounting that focuses on tracking, summarizing, and reporting a company's financial transactions. This process involves preparing financial statements like the balance sheet, income statement, and cash flow statement, which provide insights into a company’s performance and financial health. Financial accounting adheres to standardized guidelines and principles, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability across different organizations. It plays a crucial role in informing investors, creditors, and other stakeholders about the financial status and decision-making of a business.
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