What is financial accounting?

Financial accounting is the process of recording, summarizing, and presenting financial information in the form of financial statements to internal and external stakeholders. This process helps businesses to track and monitor their financial performance, identify areas of improvement, and make informed decisions based on accurate financial data. Financial accounting includes tasks such as journalizing transactions, creating balance sheets, income statements, and cash flow statements, and ensuring compliance with accounting standards and regulations. The information provided by financial accounting is critical for investors, creditors, employees, and management, and helps in determining the financial health and viability of the organization.

This mind map was published on 18 May 2023 and has been viewed 116 times.