Financial accounting
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Financial Accounting
Financial accounting (pronunciation: /ˈfaɪnænʃəl əˈkaʊntɪŋ/) is a specialized branch of accounting that keeps track of a company's financial transactions. 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.
Etymology
The term "financial accounting" is derived from the words "finance", which comes from the Latin word financia, meaning "money matters", and "accounting", which comes from the Old French word acompter, meaning "to account".
Related Terms
- Balance Sheet: A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time.
- Income Statement: A financial statement that shows how much revenue a company earned over a specific time period.
- Cash Flow Statement: A financial statement that shows the amount of cash and cash equivalents entering and leaving a company.
- Equity: The value of an ownership interest in a business, including securities that are a residual interest in the assets of an entity after deducting liabilities.
- Liability: An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
- Asset: A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
See Also
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