What is Financial Accounting?
Financial Accounting is very common now-a-day, but people did not know actually what financial accounting is, below we try to explain ” what is a financial accounting ” in clear and easy way.
Financial accounting is the art or science of recording, classifying and summarizing the business transaction in a significant manner and interpreting the result and preparation of Financial Reports.
Financial Accounting According to Dupree & Marder
“The act of collecting, processing analyzing interpreting and projecting of statements”
Accounting has been defined as: the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of financial character, and interpreting the results thereof.(AICPA)
From the above definition of Financial Accounting
we can ascertain that:
1.Recording of business data.
2.Classification of recorded data.
3.Analysis of summarized data.
4.Preparation of statements and reports.