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Financial accounting plays important and useful role by developing the information for providing answers to many questions faced by the users of accounting information.
Besides, accounting is also useful in the following respects:-
(1) Increased volume of business results in large number of transactions and no businessman can remember everything. Financialaccounting firms records obviate the necessity of remembering various transactions.
(2) Accounting record, prepared on the basis of uniform practices.
(3) Cocooning records, backed up by proper and authenticated vouchers are good evidence in a court of law.
(4) If a business is to be sold as a going concern then the values of different assets as shown by the balance sheet helps in bargaining proper price for the business.
(5) Taxation authorities (both income tax and sales tax) are likely to believe the facts contained in the set of financial & managerial accounting books if maintained according to generally accepted accounting principles.
What else can I help you with?
Describe the uses of financial accounting?
describe various uses of financial statements
What is Financial accounting data?
what is financial accounting?
What are the distinguishing features of managerial accounting?
How would you describe the difference between financial and managerial accounting? First, the primary users of reports in financial accounting is external users: stockholders, creditors, and regulators. The primary users of managerial accounting is internal users: officers and managers. Second, the types and frequency of reports for financial accounting uses financial statements and they are quarterly and annually. Managerial accounting uses internal reports and as frequently as needed. Third, the purpose of reports for financial accounting is general-purpose and managerial accounting is special-purpose for specific decisions. Fourth, content of reports for financial accounting is limited to double-entry accounting and cost data, highly aggregated (condensed), pertains to business as a whole, and generally accepted accounting principles. Managerial accounting is extended beyond double-entry accounting to any relevant data, very detailed, pertains to subunits of the business, and standard is relevance to decisions. Last, financial accounting verification process is audit by CPA and managerial accounting verification process is no independent audits.
Is Management accounting starts where financial accounting ends?
Management accounting starts where financial accounting ends
The output of financial accounting is?
The output of the financial accounting is preparation of financial statements.
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting?
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting
Compare and contrast between cost accounting and financial accounting?
compare and contrast cost accounting and financial accounting
Differentiate cost accounting system from financial accounting system?
Q.5 Differentiate Financial Accounting and Management accounting
What has the author Fred Phillips written?
Fred Phillips has written: 'Fundamentals of financial accounting' -- subject(s): Accounting 'Fundamentals of financial accounting' -- subject(s): Accounting 'Fundamentals of financial accounting' -- subject(s): Accounting
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
What has the author Gary A Porter written?
Gary A. Porter has written: 'Using financial accounting information' -- subject(s): Accounting 'Using financial accounting information' -- subject(s): Accounting 'Financial accounting' -- subject(s): Accounting
Is the financial accounting standards advisory board the same as the federal accounting standards board?
The Financial Accounting Standards Board (FASB) is a private organization (within the Financial Accounting Foundation) that issues financial accounting and reporting standards for nongovernmental entities.
