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What Is Financial Accounting?
I have always been a science student but now I have switched my studies towards economics. In that I have a course named financial accounting. I don’t know what financial accounting is and need brief information about it.
Financial accounting is a study of making financial statements which are beneficial to businessmen, accountants and stockholders to notify the standing of their business. Financial accounting is necessary for students to study as it provides a deep understanding of all forms of statements like balance sheet, income statement and the statement of cash flows. It helps related people understand what is coming into the business, what is going out of it. The costs that are being incurred and the profit they are earning on the expense of those costs. All these transactions are important for planning and decision making related to the business.