financial accounting

Financial Accounting

A branch of accounting involving the preparation and publication of financial statements, earnings reports, and other forms for disclosure to shareholders, regulators, and any other stakeholders. Financial accounting is necessary for publicly-traded companies and some other corporations. It must be accomplished in accordance with the Generally Accepted Accounting Principles or the equivalent in different countries. The primary difference between financial accounting and managerial accounting is the fact that financial accounting involves explanation to outside parties, while managerial accounting is primarily internal.

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financial accounting

ACCOUNTING activities directed towards the preparation of annual PROFIT-AND-LOSS ACCOUNTS and BALANCE SHEETS in order to report to shareholders on their company's overall (profit) performance. See MANAGEMENT ACCOUNTING.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

financial accounting

the accounting activities undertaken by a company directed towards the preparation of annual PROFIT-AND-LOSS ACCOUNTS and BALANCE SHEETS in order to report to shareholders on their company's overall (profit) performance. See MANAGEMENT ACCOUNTING.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005