Introduction of the term Financial Accounting
Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?
Expert
Financial Accounting is the procedure in that business dealings are recorded methodically in the different books of accounts managed by the organization so as to make financial statements. Such financial statements are essentially of two types: primary is Profitability Statement or Profit and Loss Account and subsequent is Balance Sheet. The element of Financial Accounting:
i) Monetary Transactions: In financial accounting only dealings in money terms are considered. Transactions not stated in money terms don’t find any place in financial accounting, howsoever imperative they might be from business opinion.
ii) Historical Nature: Financial accounting reflects on only those transactions which are of historical nature that is, the transaction which have already happened. No futuristic transactions find any place in financial accounting, howsoever imperative they might be from business opinion.
iii) Legal Requirement: Financial accounting is a lawful need. It is needed to manage the financial accounting and make financial statements there from. It is as well compulsory to get such financial statements audited.
iv) External Use: Financial accounting is for those people who are not element of decision making procedure concerning the organization such as customers, investors, suppliers, financial institutions and so on. Therefore, it is for external use.
v) Disclosure of Financial Status: It relates the financial status and financial presentation of the business as a entire.
vi) Interim Reports: Financial statements that are depended on financial accounting are interim reports and can’t be the last ones.
vii) Financial Accounting Process: The procedure of financial accounting gets influenced because of the different accounting policies pursued by the accountants. Such accounting policies differ mostly in two regions: Calculation of depreciation and Valuation of inventory.
Project Accounting: It is sometimes termed to as job cost accounting and is the practice of making financial reports particularly designed to track financial growth of projects, which can then be utilized by managers to support project management.
Explain Cost of goods and how they are used in estimating gross profit and net profit of the business?
State the reason for negative synergistic gains for British acquisitions of the U.S. firms?
Compare and contrast a variety of types of secondary market trading structures.
Please help me in solving this requirement
A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet
Describe the official reserve assets and some of its important components.
What is the Historical Cost of Inventory?
What are the factors which influences real estate market?
The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there
18,76,764
1938480 Asked
3,689
Active Tutors
1420735
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!