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Financial Accounting Homework Help | Financial Accounting Assignment Help | Financial Accounting Online Experts

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Financial accounting is a system that accumulates, processes and reports information about an entity's performance (i.e. profit or loss), its financial position and changes in financial position.

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Financial accounting is the area of accounting that provides useful information to the external users . Qualities of financial accounting – relevance , reliability ,comparable , understandable ,materiality etc . Three components of financial statements - statement of cash flow , profit and loss statement and statement of financial position .
Statement of cash flow : In this , input and output are available in concrete cash within a stated period . General template of statement of cash flow : cash inflow - cash outflow + opening balance = closing balance .
Profit and loss statement : Following equation determines the profit and loss :
Sales (revenue) – Cost of Sales – total expenses + total income – tax paid = profit/loss
If balance is negative , then it is a loss whereas if the balance is positive then it is a profit .
Statement of financial position : It depends on assets and liabilities . Difference between current assets and current liabilities is known as working capital .
Benefits : Track cash management , develop budgets , reviews of financial statement etc .

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