Financial Accounting

Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business or organization. It provides a clear picture of financial performance and position through structured reports, such as income statements and balance sheets. These reports help stakeholders, including investors, creditors, and management, understand how well a company is performing financially, where its money comes from, how it is spent, and what assets it owns. Financial accounting follows established standards to ensure consistency and transparency, enabling informed decision-making and enhancing trust among users of the financial information.