WHAT IS FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING
WHAT IS FINANCIAL ACCOUNTING ?

Concepts of financial accounting

Financial accounting is the process of indemnifying, measuring and communication economic information to the users of such information. It is a branch of accounting of accounting which is primary related to recording. Classifying. Summarizing and presenting the day transaction. It aims to ascertain profit and loss incurred during a particular period of time through profit and loss account. Similarly, it also shows the financial position on a given data trough balance sheet.

Financial accounting is historical in nature since it records the past transaction. It is the oldest branch of accounting which is equally applicable in all types of organization. The other branches of accounting have their roots on it. It is based on money measurement concepts since it records the traction that can be measured in monetary terms only. The accounts principle and standing under financial accounting are generally accepts and universally practiced. It aims to provide information about result of the business operating and financial position to the external parties viz. government, creditors, investors etc.
The processing accounting is mentioned through the following:

As shows in the above figure, the inputs for financial accounting transaction and events. The outputs are communicated to various users such as investors, lenders & suppliers, government, shareholders etc. which serve as the basis for their actions

Objectives of financial accounting

The objectives of financial accounting are listed below:

1. To record the financial transactions: the main objective of financial accounting is to be record the financial transaction of a business systematically and scientifically. The need of recording the truncation arises due to the limitation of memory power of human being. Under financial accounting the transactions are recorded in different books of accounts.

2. To disclose the result of operation: another important objective of financial accounting is to disclose the result of operation i.e. profit earned or loss suffered during a particular period of time. This is achieved by preparing profit and loss account.

3. To reveal the financial status: financial accounting also aims to reveal the financial condition of a firm on a given date. For this, a statement of assets and liabilities called balance sheet is prepared.

4. To supplier's necessary financial information: financial accounting aims to provide information to various parties like government, investment, creditors, owners etc. usually the information is suppliers at the end of accounting period through various financial statements.

Statements of financial accounting

Financial accounting suffers from a number of deficiencies which is as follows:

1. Disclose the overall result only: financial accounting discloses the overall result of a business. It fails to reveal the result of each departments, processes, products, jobs etc.

2. Not helpful in price fixation: financial accounting does not provide adequate information for fixation of selling prices of the products or services rendered by business. So, it is not side to preparation tender or quotations.

3. No control on cost: financial accounting does not provide proper systems of controlling various elements of cost like materials, labor and other expenses. Cost control procedure can be adopted by setting standers, but it lack in financial accounting.

4. No classification of cost: financial accounting does not classify into costs i.e. direct and indirect, fixed and variable, controllable and uncontrollable, normal and abnormal etc. it only divides expenditures into two categories as capital and revenues.

5. Fails to offer a system of standards: financial accounting fails to measure the efficiently of materials, labor and other resources as it does not offer any system of standard.

6. Fails to offer a system of standards: financial accounting does not provide cost information to the management to make pans and decisions as well as controlling the operating.

7. Fails to ascertain cost of products and services: financial accounting fails to ascertain cost of products and services dues to lack of cost information.

8. Fails to provide information about losses: financial accounting fails to provide information causes due to idle time, defective materials etc.

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1. Management accounting
2. Cost accounting
3. FINANCIAL ACCOUNTING
4. Cost concept and classification
5. Accounting error and their rectification
6. Financial statement analysis
7. Subsidiary Books Account
8. balance sheet 
9. Final account of a company
10. accounting worksheet
11. Bank Reconciliation Statement
12. FORFEITUERE AND RE-ISSUE OF SHARES 
13. Share Capital Accounting
14. account company
15. Accounting Reserve and Provisions 
16. Depreciation for Accounting 
17. profit and loss account
18. Capital and revenue Account
19. Journal Accounting
20. Trial Balance Accounting
21. Petty Cash Book
22. Cash and Bank Transaction
23. Ledger Account
24. Journal Entry Accounting
25. Accounting Equation
26. Double Entry Book Keeping System
27.  accounting term used Account 
28. Accounting Meaning
29. Accounting- in information system
30. Statement of expenditure report
31. Petty cash fund
32. Bank cash book/cash bank book
33. Journal voucher
34. Budget heads for the fiscal year
35. budget head expenditure
36. New accounting system
37. Government accounting
38. single entry system
39. Accounting for non- trading concern
40. Cost reconciliation statement
41. Unit or output costing
42. Accounting for overheads
43. Payroll sheet
44. Accounting for labor
45. Inventory Management
46. Issue of materials
47. Store keeping
48. Accounting for materials
49. Cost classification
50. Cash flow statement
51. Funds flow statement
52. Accounting Ratio analysis
53. Accounting for Debentures 
54. ISSUE OF SHARES OTHER THAN CASH
55. ISSUE OF SHARE FOR CASH
56. Final Account
57. Accounting for labour