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:
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)
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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.