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Financial accounting is a specialized branch of accounting that keeps track of a companys financial transactions.

Financial statement in accounting. Corporation must comply with the common rules known as generally accepted accounting principles or gaap or us gaap. Using standardized guidelines the transactions are recorded summarized and presented in a financial report or financial statement such as an income statement or a balance sheet. Financial statements are written reports that quantify the financial strength performance and liquidity of a company.

A complete set of financial statements is used to give readers an overview of the financial results and condition of a business. They are useful for the following reasons. The financial statements are comprised of four basic reports which are as follows.

The balance sheet displays the companys total assets and how these assets are financed through either debt or equity. To determine the ability of a business to generate cash and the sources and uses of that cash. The financial statement begins with revenues and 2 the balance sheet balance sheet the balance sheet is one of the three fundamental financial statements.

These statements are key to both financial modeling and accounting. Financial reporting financial statements present the results of operations and the financial position of the company. Financial statements accounting basics.

Presents the revenues expenses and profitslosses generated during the reporting period. If the corporations stock is traded on a stock exchange the corporation is also required to comply with the reporting requirements of the securities and exchange commission sec an agency of the us.

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