Question

What are the importance of financial accounting?

Answer 1

Financial Accounting is a combination of preparing the trading a/c profit and loss a/c and the balance sheet. It basically provides a brief summary of the transactions that took place in the period. It also provides the financial position of the business so that the business knows where it is and what it must do to make improvements. The users of the information like stakeholders, bankers etc. are equipped with a brief info of the entity and its position.