Financial Economics Assignment Help

Financial accounting is a major branch of accounting that maintains track of all the company’s financial transactions. Based on set out standards and policies, routine transactions are recorded, analyzed and presented in form of various financial statements which include;

1. Income statement- This statement is prepared to present revenues, expenses as well as the profit and losses within the reporting period.

2. Balance sheet – Provides details of the organizations assets, liabilities and equity, all showing the financial position of the organization.

3. Statement of cash flows- this financial statement presents the inflow and outflow of the organizations’ cash, as realized during the financial period.

4. Statement of retained earnings- this financial statement presents all changes in the organizations equity within the financial period.

Financial accounting defines the rules and procedures adopted by organizations in conveying their financial information in order to influence the decision making of various stakeholders who depend on the organization’s financial performance to make decisions.

For the information to be useful to the various users, the information presented must be credible, comprehensive and comparable. Financial accounting therefore adopts a set of standard principles to ensure information is robust and dependable. This follows adoption of generally accepted accounting principles

At the core of every financial presentation is the double entry concept which means that all transactions must affect two sides of the accounts involved. The accounting system should always reflect a balance between the assets and liabilities.

Learning financial accounting presents a valuable opportunity for students to acquire robust knowledge of how to manage and keep track of organizations finances. The subject is however, very complicated with a wide array of concepts, calculations and logic application.

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