Financial Accounting

What Is Financial Accounting?

Financial accounting is a specific branch of accounting involving a process of recording,
summarizing, and reporting the myriad (numerous) of transactions resulting from business
operations over a period of time.

What is financial accounting and example?

Financial Accounting is the process of recording, summarizing and reporting
transactions and revenue-expense generations in a time period.

For example, investors or sponsors need to verify an account statement before showing
interest in associating with the business.

What are the 3 types of accounting?

To track a business's income, a business can follow three types of accounting that are: 
 Managerial/Management Accounting
 Financial Accounting
 Cost Accounting

What is the main idea of financial accounting?

In a practical sense, the main objective of financial accounting is to accurately prepare an
organization's financial accounts for a specific period, otherwise known as financial
statements.

The three primary financial statements are:

 Income Statement (IS)
 Balance Sheet (BS)
 Statement of Cash Flows or Cash Flow Statement (CFS)

What are the 5 accounting types?

The five primary account categories are as follows:
 Assets
 Liabilities
 Expenses
 Income (Revenue)
 Equity

What are the 2 main types of accounting?

The two main accounting methods are Cash accounting and Accrual accounting.
Cash accounting records revenues and expenses when they are received and paid.
Accrual accounting records revenues and expenses when they occur. Generally accepted
accounting principles (GAAP) requires accrual accounting.
What are the 3 types of accounting?
To track a business's income, a business can follow three types of accounting that are:
 Managerial accounting
 Financial accounting
 Cost accounting

What is the 3 golden rules of accounts?

Take a look at the three main rules of accounting: Debit the receiver and credit the giver.
Debit what comes in and credit what goes out.
 Debit expenses and losses
 Credit income and gains.

Golden Rules of Accounting

 "Debit what comes in - credit what goes out."
 "Credit the giver and Debit the Receiver."
 "Credit all income and debit all expenses."
The golden rules of accounting also revolve around debits and credits. Take a look
at the three main rules of accounting:

 Debit the receiver and credit the giver

 Debit what comes in and credit what goes out
 Debit expenses and losses, credit income and gains