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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- Audit Note Book
During the course of an audit, an auditor has to make several queries which might not have been satisfactorily answered, he might
- Normal balance
The normal balance of an account is on the side where an increase in the account is recorded. Debits to a specific asset account should exceed the credits to that account.
- Days in inventory
A variant of the inventory turnover ratio is days in inventory that measures the average number of days inventory is held; calculated as 365 divided by the inventory turnover ratio.
- Cost method
Cost method is an accounting method in which the investment in common stock is recorded at cost, and revenues are recognized only when cash dividends are received.
- Other receivables
Other receivables include various forms of nontrade receivables which do not generally result from the operations of the business.
- Carrying (or book) value method
Carrying or book value method is the method of recording the bond conversion that the company does not consider the current market price...
- Definition of Audit
The word “audit” is derived from the Latin word “audire”, which means to hear. In middle ages, whenever the owners of a business