What is the definition of financial accounting?

Answer by  hosneymaruf (182)

Financial accounting is the accounting that relies on some basic assumptions(going concern assumption, fixed time period assumption), principles(matching principles, historical principles) and modifying conventions (materiality, cost benefit) and ensures to prepare financial reports of a business organization.

Answer by  richmiller3214 (138)

The purpose of financial accounting is to provide financial information about a business's performance so that owners and managers can make sound decisions.

Answer by  rctharp (6)

Financial accounting surrounds the accounting behind creating financial statements. Financial accounting generally includes journal entries for the Balance Sheet and Income Statement, as well as financial analysis including ratios. The summarized data within the financial statements is used to make economic decisions and it's reporting is required by the SEC.