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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- Contribution margin
Contribution margin is the amount of revenue remaining after deducting variable costs. It is often stated both as a total amount and on a per unit basis.
- Effects of Stock Dividends
How do stock dividends affect stockholders’ equity? They change the composition of stockholders’ equity, because they transfer to paid-in capital a portion...
- Secured bonds
Secured bonds have specific assets of the issuer pledged as collateral for the bonds. A bond secured by real estate...
- Physical units
Physical units are the actual units to be accounted for during a period, irrespective of any work performed. To keep track of these units, add the units started...
- Unpaid expenses
Expenses incurred during the year but for which payment has not been made and will have to be made next year are called unpaid
- Allowance method
The allowance method of accounting for bad debts involves estimating uncollectible accounts at eh end of each period. This provides better matching on the income statement.
- Contra asset account
Accumulated Depreciation- Office Equipment is a contra asset account which is an account offset against an asset account on the balance sheet.