Financial accounting refers to the field of accounting that provides economic and financial information for investors, creditors, and other external users. The information needs of external users vary considerably.
It is a section of the balance of payments accounts. Under the revised format of the International Monetary Fund, the financial account measures long-term financial flows including direct foreign investment, portfolio investments, and other long-term movements. Under the traditional definition, still used by many countries, items in the financial account were included in the capital account.
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- Raw materials inventory
Raw materials inventory is a general ledger account. It is also referred to as a control account because it summarizes the detailed data regarding specific inventory...
Under the straight-line method, companies expense the same amount of depreciation for each year of the asset’s useful life. It is measured solely by the passage of time.
- Subsidiary ledger
A subsidiary ledger that collects transaction data of individual creditors. Companies use subsidiary ledgers to keep track of individual balances.
- Debit memorandum
Some banks charge a monthly fee for their services. Often they charge this fee only when the average monthly balance in a checking account falls below a specified amount.
- Labor price variance
Labor price variance is the difference between the actual hours times the actual rate and the actual hours times the standard rate for labor.
Liabilities are claims against assets-that is, existing debts and obligations. Businesses of all sizes usually borrow money and purchase merchandise on credit. Creditors may legally force...
- Management consulting
Management consulting is an area of public accounting ranging from development of accounting and computer systems to support services for marketing...