What is financial accounting explain the scope of financial accounting?
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FINANCIAL ACCOUNTING:
Financial Accounting deals with the study of accounting and its concepts and measurements that underly financial statements, and developing the skills needed to analyze financial statements effectively, and gain an understanding of the choices enterprises make in reporting the results of their business activities. The most basic objective of financial accounting is preparation of general purpose financial statements, which are financial statements meant for use by stakeholders external to the entity, who do not have any other means of getting such information.
SCOPE OF FINANCIAL ACCOUNTING:
Financial Accounting has wide scope and area of application. It is not only for the business world, but spread over in all the spheres of the society in all professions. As accounting is a dynamic subject, its scope and area of operation have been always increasing, keeping pace with the changes in socio-economic changes. It also practiced in non-trading institutions like schools, colleges, hospitals, chartable trust, trust clubs, co-operative society and also in government and local self-government in the form of municipality, panchayat.
Financial Accounting deals with the study of accounting and its concepts and measurements that underly financial statements, and developing the skills needed to analyze financial statements effectively, and gain an understanding of the choices enterprises make in reporting the results of their business activities. The most basic objective of financial accounting is preparation of general purpose financial statements, which are financial statements meant for use by stakeholders external to the entity, who do not have any other means of getting such information.
SCOPE OF FINANCIAL ACCOUNTING:
Financial Accounting has wide scope and area of application. It is not only for the business world, but spread over in all the spheres of the society in all professions. As accounting is a dynamic subject, its scope and area of operation have been always increasing, keeping pace with the changes in socio-economic changes. It also practiced in non-trading institutions like schools, colleges, hospitals, chartable trust, trust clubs, co-operative society and also in government and local self-government in the form of municipality, panchayat.
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Answer:
Financial Accounting
Financial Accounting is both an art and science which involves recording, classifying , summarising, interpreting and communication of transactions and business events ,in terms of money .
Scope Of Financial Accounting
Financial Accounting has a wide scope and area of application as :-
- Financial Accounting is a useful tool to manage and to outside parties such as Shareholders, Potential Owners, Creditors, Costumers, Employee and Government.
- Financial Accounting provides information regarding the results of it's operations and the financial position of the organisation.
- Financial Accounting helps in finding the amount of turnover.
- Financial Accounting check inflow and outflow of the business.
- Financial Accounting helps in checking the amount of stock.
hope it may help you...
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