Corporate Financial Accounting

Running Head: CORPORATE FINANCIAL ACCOUNTING
CORPORATE FINANCIAL ACCOUNTING
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1CORPORATE FINANCIAL ACCOUNTING
Table of Contents
Financial Accounting.................................................................................................................2
Role of Financial Accounting in Corporate Environment.........................................................3
Reference....................................................................................................................................5

2CORPORATE FINANCIAL ACCOUNTING
Financial Accounting
Financial accounting is defined as that field of accounting that is concerned with the
overall summary, reporting and analysis of the financial transactions which is related to the
business. This involves preparing of the financial statements which is available for the use of
public. It is the process of the financial statements which is used by the companies for
showing their financial performances as well as financial position to the people who are
outside the company which includes investors, creditors, customers and suppliers (Lovell,
2014).
Most of the companies put quarterly as well as annual financial statements together,
which are presented or making available to the public who are investing and the shareholders.
The financial performance of the company is showed by the four basic financial statements,
which are as follows:
 Income Statement- This is also known as profit and loss statements. This statement
covers the particular period of time such as a year or quarter. In the income statement,
net income is generated by deducting total revenue from the total expenses.
 Balance Sheet- This is the statement of the assets as well as the liabilities. The
balance sheet is considered as the financial snapshot at the specific period of time or
at the end of the financial year. In the balance sheet, assets are equal to addition of
liabilities and shareholders’ equity (Lovell, 2014).
 Cash Flow Statement- This statement shows the inward and outward flow of cash to
and from the company over the specific time period.
 Statement of Retained Earning- This statement covers the specific time period and
shows the paid dividends from the shareholders earnings and the company’s retained
earnings.