Financial accounting, Financial Management

Financial accounting:

Financial accounting attempts to establish the value of a particular organisation at a specific point in time, and its earnings over a specified period of time. The reports on which financial accounting focus are the three reports which go to make up a business's annual report.  They are the balance sheet, the profit and loss statement and the cash flow statement.

Whilst used within the organisation, the primary purpose of financial accounting is to accurately and concisely communicate financial information to third parties such as banks, investors and the tax department. The focus of financial accounting is generally more long term and attempts to capture the status and performance of an organisation over an extended period of time - usually the financial year. They are generally externally focussed and may accompany the organisation's annual report which will include other, non-financial information.

 

 

Posted Date: 10/1/2012 3:56:33 AM | Location : United States







Related Discussions:- Financial accounting, Assignment Help, Ask Question on Financial accounting, Get Answer, Expert's Help, Financial accounting Discussions

Write discussion on Financial accounting
Your posts are moderated
Related Questions
how would you incorporate currency exchange risk into the capital budgeting process of foreign investment.

Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

Pension Fund Management: A Global Perspective Pension funds are known worldwide more for their social security element. They have assumed more importance from the day the priva

discuss the applicabilty of the operating cycle in a vegetable growing business

Objectives of financial services authority FSMA provides four statutory objectives to FSA. They are: Market Confidence: Maintaining confidence in the financial system;

We have seen earlier that there are callable bonds. This is a valuable feature for the issuers who consider that their stock is undervalued enough so that selling

Q. Describe the Functions of Controller? (1) Planning and budgeting: - It comprises capital expenditure planning, profit planning, budgeting, inventory control, sales forecasti

Explain how management goals are incorporated into pro forma financial statements. Management locates a target goal, and forecasters produce pro forma financial statements within

The option features embedded in many bonds and fixed-income securities have made the binomial interest rate tree approach a valuable model for pricing debt. Binomial