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- The classification and recording of the monetary transactions of an activity in accordance with established concepts, principles, accounting standards and legal requirements and their presentation, by means of profit and loss account, balance sheets and cash flow statements, during and at the end of accounting period
- Financial accounting originated to fulfill the stewardship function of businesses and this is still an important feature. Most of the external financial aspects of the organization, e.g., dealing with accounts payable and receivables, preparation of final accounts etc., are dealt with by the financial accounting system. Of course internal information is also prepared, but in general it can be said that financial accounting presents a broader, more overall view of the organization with primary emphasis upon classification according to type of transaction rather than the cost and management accounting emphasis on the function, activities, products and processes and on internal planning and control information.
Wilfykil answered the question on August 5, 2019 at 06:40