Financial Accounting

Introduction to Financial Accounting and its terms.

Understanding financial accounting: Financial accounting is the branch of accounting concerned with recording, classifying, summarizing, and communicating financial information about a business entity to its stakeholders. It serves as the "language of business" and provides crucial data for decision-making.

Table of Contents

1. Introduction to Financial Accounting
  • Meaning of Accounting
  • Objective of Accounting
  • Accounting Process or Cycle
  • Function of Accounting
  • Characteristics of Accounting
  • Relationship between Book-keeping, Accounting and Accountancy
  • Branches of Accounting
  • Basis of Accounting
2. Accounting Equation, Accounting Standards and IFRS
  • GAAP : Assumptions, Concepts, and Conventions
  • Basic Accounting Terms 

  • Accounting Equation
  • Accounting Standards
  • International Financial Reporting Standards (IFRS)
3. Accounting Process : Journal to Trial Balance
  • Meaning of Accounting Process
  • Source Documents
  • Voucher 
  • Book of Originals Entry
  • Ledger
  • Trial Balance
4. Reconciliation Statement
  • Bank Reconciliation Statement
  • Receivable Reconciliation Statement
  • Payable Reconciliation Statement
  • Stock Reconciliation Statement
5. Financial Management/Statements
  • Financial Statements of Proprietary Concerns
  • Final Accounts of Manufacturing Firms
  • Final Accounts of Non-manufacturing Firms
  • Financial Statements of Not-for-Profit Concerns
  • Final Accounts of Not-for Profit Organisation
  • Accounting System for Not-for Profit Organisation
6. Fundamental of Partnership
  • Partnership Deed
  • Final Accounts of Partnership Firms
  • Capital Accounts System
  • Interest on Partners Drawings
  • Interest on Partner’s Capitals
  • Past Adjustments
  • Guarantee of Profit
7. Ledger Accounts
  • Feature/Utility of Ledger
  • Posting of Transaction from Journal to the Ledger
  • Types of Ledger Accounts
8. Cash Book & Financial Audit
9. Double Entry Book Keeping
10.Trial Balance
  • Features of a Trial Balance
  • Objectives of Preparing Trial Balance
  • Limitations of Trial Balance
  • Methods of Preparing Trial Balance
  • Precautions while Preparing Trial Balance
11. Trading Account
  • Features of a Trial Balance
12. Profit Loss Account and Balance Sheet
  • Features of a Trial Balance
13.Concept of Social Accounting & Social Audit
  • Features of a Trial Balance
14. Single Entry System of Accounting
  • Single Entry System/Incomplete Records
  • Profit or Loss under Single Entry System
15. Public Financial Management System (PFMS)
  • Features of a Trial Balance
16. Indian Financial Management System
  • Features of a Trial Balance
17. Taxation, Tax Laws- Direct, Indirect
  • Features of a Trial Balance
18. Cost Management-Budgetary control
  • Features of a Trial Balance
19. Cost Accounting
  • Objectives of Cost Accounting
  • Advantages of Cost Accounting
  • Disadvantages of Cost Accounting
  • Relationship between Financial Accounting and Cost Accounting
  • Other Related Terms used in Cost Accounting
  • Methods of Costing
  • Classification of Cost
20. Developments in Accounting
  • Features of a Trial Balance
21. Depreciation Accounting
  • Related Concepts of Depreciation
  • Causes of Depreciation
  • Characteristics, Needs and Factors of Depreciation
  • Methods for Computing Depreciation
  • Accounting Treatment of Depreciation
  • Change in the Method of Depreciation
22. Rectification of Errors
  • Types of Errors
  • Steps to Locate the Errors
  • Nature of Errors
  • Rectification of Errors

Financial accounting

Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of goods and services; the discipline of financial economics bridges the two. Financial activities take place in financial systems at various scopes; thus, the field can be roughly divided into personal, corporate, and public finance.[a]

In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities.

A broad range of subfields within finance exists due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is the viability, stability, and profitability assessment of an action or entity. In some cases, theories in finance can be tested using the scientific method, covered by experimental finance.

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