Financial Accounting Basics

Financial Accounting is a branch of accounting which provides methods of recording financial transactions. Using various methods of recording, summarizing and presentation, these transactions are the source of financial statements such as income statement, balance sheet, cash flow statement and statement of changes in equity.

Financial statements are issued on a regular basis after each year as it is mandatory in various legislations. However, often companies issues interim reports such as quarterly and half yearly statements to keep its stakeholders updated about the performance of the entity. The purpose is not just to show the worth and value of the entity. Instead, the purpose to issue financial statements is to keep the outside parties such as investors and lenders well aware about the entity performance and financial situation. 

In order to make the financial statements comparable all over the world, IASB (International accounting standards board) and FASB (Financial accounting standards board) work rigorously to harmonize the financial accounting sector.

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Chart of Accounts Journal Accounting Equation Expanded Accounting Equation Financial Transaction Purchase Journal T – Account Contra Account Subsidiary Ledgers Special Journals Assets Accounts Liability Accounts Equity Accounts Revenue Accounts Expense Accounts Debit Credit Rules Double Entry Accounting Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel