This presentation provides an overview of financial accounting in the corporate environment. It explains the process of preparing financial statements and their use by external stakeholders. It also discusses the role of financial accounting in decision-making and communicating the financial health of an organization.
Contribute Materials
Your contribution can guide someoneโs learning journey. Share your
documents today.
CORPORATE FINANCIAL ACCOUNTING
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
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.
Financial Accounting 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.
Financial Accounting ๏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 companyโs retained earnings Financial statements must confirm to the accounting standards set by regulator. In the US, financial accounting as well as reporting standards (GAAP) is established by the Financial Accounting Standards Board
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Role of Financial Accounting in Corporate Environment ๏Financial Accounting is concerned with the financial statements that are prepared for the decisions makers that include internal as well as external stakeholders such as creditors, banks, employees, stockholders and suppliers. ๏Financial accounting helps the organization for achieving the objectives with the help of assembling, organizing as well as communicating the information about the corporate environment. ๏Accounting is the way of communicating the financial health of the organization to the interested parties as well as it is also the method for assessment of the liabilities, assets and the cash flows or the companyโs future for all the investors that is current and future.
Role of Financial Accounting in Corporate Environment ๏Internal Stakeholdersare the individuals or the parties who are the part of the organizations such as Employees, Owners, Managers, Investors and Board of Directors. ๏External Stakeholders are the stakeholders who are not within the business such as Consumers, Regulators, Investors and Suppliers. However, they care about or they are one who is affected by the affected by the performance of the corporate.
Reference ๏Crowther, D. (2018).A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting. Routledge. ๏Lovell, H. (2014). Climate change, markets and standards: the case of financial accounting.Economy and Society,43(2), 260-284. ๏Watson, L., 2015. Corporate social responsibility research in accounting.Journal of Accounting Literature,34, pp.1-16.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.