Financial Accounting Introduction (Part - I)
Financial Accounting Financial accounting is a branch of accounting that focuses on the preparation and reporting of financial statements for external users, such as investors, creditors, and regulatory authorities. It involves recording, summarizing, and presenting financial transactions and events of a business entity in accordance with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). Definition The term accountancy is defined as “the art of recording, classifying and summarising in a significant manner and in terms of money transaction and events which all of a financial character and interrupting the results thereof.” Advantages of Accounting: 1. Financial Information for Decision Making: Accounting provides relevant and reliable financial information that helps users make informed decisions about investing, lending, or assessing the financial health of a business entity. 2. Transparency and Accountability: Through accountin