Financial accounting is a specific branch of accounting involving a process of recording, summarising and reporting the myriad of transactions resulting from business operations over a period of time. Work opportunities for a financial accountant can be found in both the public and private sectors. In a practical sense, the main objective of financial accounting is to accurately prepare an organisation’s financial accounts for a specific period, otherwise known as financial statements. The three primary financial statements are the income statement, the balance sheet and the statement of cash flows. The two primary functions of financial accounting are to measure business activities of a company and to communicate information about those activities to investors and creditors for decision-making purposes. The purpose of financial accounting ethics is to ensure that certified public accountants (CPAs) conduct their duties objectively and with integrity. Financial accounting ethics form the basis for legal and regulatory requirements and include issues related to maintaining public trust.

Gokul JL

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