Financial accounting is a vital discipline within the business world. It provides a structured approach to documenting, summarizing, and reporting financial transactions. Its core purpose is to deliver precise and dependable financial information to stakeholders, such as investors, creditors, management, and regulatory authorities, enabling them to evaluate a company's financial performance and make informed decisions.

The main financial statements are the balance sheet, the income statement, the statement of equity, and the cash flow statement. A balance sheet provides a snapshot of a company's financial position at a specific time. It lists assets, liabilities, and equity, showing how resources are financed. An income statement, also known as a profit and loss statement, reports a company's financial performance over a specific period. The statement of equity, also known as the statement of changes in equity, details the changes in a company's equity over a specific period, including contributions from owners, distributions to owners, and profits or losses. The cash flow statement tracks the flow of cash in and out of the business, highlighting operating, investing, and financing activities. It helps assess a company's liquidity and cash management.

Financial accounting follows standardized principles for consistency and comparability, primarily through Generally Accepted Accounting Principles (GAAP) in the United States and International Financial Reporting Standards (IFRS) globally. GAAP provides specific rules and guidelines for U.S. financial reporting, while IFRS harmonizes accounting practices internationally to facilitate global investment and business.

Tags
Financial AccountingStakeholdersFinancial StatementsBalance SheetIncome StatementStatement Of EquityCash Flow StatementGAAPIFRSFinancial PerformanceLiquidityFinancial TransactionsAccounting Principles

Del capítulo 1:

article

Now Playing

1.4 : Introduction to Financial Accounting

Introduction to Business Finance

378 Vistas

article

1.1 : Understanding Finance

Introduction to Business Finance

7.5K Vistas

article

1.2 : Areas of Finance

Introduction to Business Finance

278 Vistas

article

1.3 : Introduction to Financial Management

Introduction to Business Finance

2.0K Vistas

article

1.5 : Accounting vs. Finance

Introduction to Business Finance

204 Vistas

article

1.6 : Financial Management Decisions

Introduction to Business Finance

1.9K Vistas

article

1.7 : Internal and External Users

Introduction to Business Finance

113 Vistas

article

1.8 : Role of Financial Managers

Introduction to Business Finance

121 Vistas

article

1.9 : Profit Maximization vs. Wealth Maximization

Introduction to Business Finance

179 Vistas

article

1.10 : Forms of Business Organization

Introduction to Business Finance

611 Vistas

article

1.11 : Sole Proprietorship

Introduction to Business Finance

213 Vistas

article

1.12 : Partnership

Introduction to Business Finance

96 Vistas

article

1.13 : Limited Liability Partnership

Introduction to Business Finance

250 Vistas

article

1.14 : Limited Liability Company

Introduction to Business Finance

95 Vistas

article

1.15 : Corporation

Introduction to Business Finance

107 Vistas

See More

JoVE Logo

Privacidad

Condiciones de uso

Políticas

Investigación

Educación

ACERCA DE JoVE

Copyright © 2025 MyJoVE Corporation. Todos los derechos reservados