financial accounting (Definition)

financial accounting (Definition)

Financial Accounting is an area in the discipline that deals with the provision of information to people external to the organization to aid them in making economic decision. It is the process of recording, summarizing and reporting of transactions of a business entity, so as to provide an accurate picture of its financial position and performance. The primary objective of financial accounting is the preparation of financial statements which are the tools of communication. It is a information system for decision making

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