Financial Accounting

Financial accounting is recording, summarizing and reporting transactions in a business. Financial accounting gives the clear of company’s accounts before shareholders of company. Financial accounting also gave information about the performance of the company over a specific period of time.

Limitations of Financial Accounting

Limitations from which financial accounting suffers may be summarized as follow: 1. Historical And Monetary Nature. Emphasis of financial accounting is on recording transactions revenues only after they have occurred, then summarizing and reporting this information at the end of accounting year in the form

Management Needs and Accounting

Original financial accounting model based on double entry system of book keeping, developed by an Italian merchant named Lucas Pacioli, is basically to fulfil managerial requirements of a trading business. Financial accounting can measure results of a merchandising business on the basis of departments