Basic Accounting Concepts
Financial accountants produce financial statements based on generally accepted accounting principles of a respective country. In particular cases financial statements must be prepared according to the International Financial Reporting Standards.
Financial accounting serves the following purposes:
- producing general purpose financial statements
- producing information used by the management of a business entity for decision making, planning and performance evaluation
- producing financial statements for meeting regulatory requirements.
Objectives of Financial Accounting
- To know the results of the business
- To ascertain the financial position of the business
- To ensure control over the assets
- To facilitate proper management of cash
- To provide requisite information
Read more about this topic: Financial Accountancy
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