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.
More from this Section
- Management consulting
Management consulting is an area of public accounting ranging from development of accounting and computer systems to support services for marketing...
- Total quality management (TQM)
Total quality management (TQM) systems implemented to reduce defects in finished products with the goal of achieving zero defects.
A worksheet is a multiple-column form that companies use in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working tool.
- CVP income statement
CVP income statement is a statement for internal use that classifies costs as fixed or variable and reports contribution margin in the body of the statement.
- Cost principles
The cost principles, also known as the historical cost principle is one of the basic underlying guidelines in accounting, dedicates that companies record assets at their cost.
- Standard costs
Standard costs are predetermined unit costs which companies use as measures of performance.
Amortization means the allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.