The-definition.com

Definition

Financial accounting

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.

Share it:  Cite

More from this Section

  • Personal Representative
    Personal Representative is a person or entity appointed to handle the assets of a person ...
  • Side Pocket
    In hedge funds, a Side Pocket is a sort of portfolio used to separate risky or low liquidity ...
  • Accounts Receivable
    Accounts Receivable are amounts that the clients owe to the service provider. “Account” ...
  • Debt Covenant
    Debt Covenants are limits imposed on loan agreements by lenders to constrain the borrower's ...
  • Share Certificate
    A Share Certificate or a Stock Certificate is a written legal document of a corporation's ...