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ConceptsofFinancial AccountingforSupporting YourAssignmentWork www.indiaassignmenthelp.com
Whatdoyouunderstandaboutfinancial accounting? Financialaccountingisoneofthemajorbranchesofaccounting. Itisusedfortheprocessthatinvolvesreporting,summarizing,and recordingthetransactionsinbusiness. Thesetransactionshavebeenrecordedforseveralperiodsoftime andareimportantforthegrowthofthebusiness. Thefinancialaccountingtransactionsaresummarizedinincome statements,balancesheetsandcashflowstatements. Thesefinancialstatementsarevitalwhendecisionsaretobetaken aboutthegrowthoftheorganization. Financialaccountingisthefieldthatisrequiredforboththe governmentaswellasprivatesectors. Herewewillbediscussingmajortopicswithinfinancialaccounting toprovideyouwithFinancialAccountingAssignmentHelp.
HowDoesFinancialAccountingWork? Itisaprocessthatinvolvesaseriesofaccountingprinciplesthat arewellestablished. There are numerous principles but not all are used anywhere, theselectionoftheprinciplesisbasedontherequirementofthe business. Withthehelpoffinancialaccountingtheinvestors,creditors,tax authorities,etcofanyorganizationareinformedaccordingly. Financialaccountingworksforthefinancialstatementandthey arebasedonfiveclassifications. Theclassificationincludesexpense,equity,liability,revenue,and assets. Financialaccountingmethodsareusedfordeterminingthenet incomeatthebottomoftheincomestatements.
TypesofFinancialAccounting Thereisnodoubtthattheentireprocessoffinancialaccounting ishugeandrequirescoveringdifferentfinancialtransactions. Thiscannotbedoneunderasingleumbrellaandsoithassub- divisions. Financialaccountingisdividedintotwotypesnamelyaccrualand cash. Theprocessoffinancialaccountingcanbeperformedineitherof thesetwomethodsorsub-divisionithas. Accrualaccountingisaboutrecordingthetransactionwhilethe revenueisrecognizable. Therecordingisdonewhenthetransactionhasalready occurred. Cashontheotherhandrecordsthetransactiononlyifitisdone viaexchangeofcash.
AdvantagesofFinancialAccounting Financialaccountingisusefulformaintainingthebusinessrecord byrackingeachtransactionoftheorganization. Thecompanycanlookintothelargetransactiondatawithinafew clicks. Withthehelpoffinancialaccounting,fraudswiththerecording systemcaneasilybedetected. Financialaccountingwillalwaysrevealthetruefinancialstatusof theorganization. Financialaccountingisbehindthepreparationoftheentire financialstatement. Theimportanceoffinancialstatementsforthedecisionandgrowth oftheorganizationiswellknown. Thedocumentspreparedbythefinancialaccountingcanactas legalevidenceifrequired.
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