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.
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- State unemployment taxes
State unemployment taxes refer to taxes that are imposed on the employer by states that provide benefits to employees who lose their jobs.
- Treasury stock
Treasury stock is a corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired.
- Tax Rule
A tax rule, often referred to as the LIFO conformity rule, requires that if companies use LIFO for tax purposes they must also use it for financial reporting purposes.
- Accelerated-depreciation method
Accelerated-depreciation method is a depreciation method that produces higher depreciation expense in the early years than in the later years.
- Controllable cost
All costs and revenues are controllable at some level of responsibility within a company. This truth underscores the adage by the CEO of any organization that...
- Indirect method
Indirect method is a method of preparing a statement of cash flows in which net income is adjusted for items that do not affect cash to determine...
- Inventory turnover
Inventory turnover is a ratio that measures the number of times on average the inventory is sold during the period. Its purpose is to measure the liquidity of the inventory.