Financial Accounting
/ˈfaɪnænʃəl əˈkaʊntɪŋ/
Definitions
- (n.) The process of recording, summarizing, and reporting financial transactions in accordance with legal standards to provide transparent financial information.
Financial accounting ensures that companies comply with regulatory requirements for financial reporting.
Related terms
Commentary
Financial accounting emphasizes compliance with legal and regulatory frameworks, which distinguishes it from other accounting branches focused on internal decision-making.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.