Question

Write a one-page paper that explains financial accounting and the role of financial accounting in a corporate environment.

 

Answer 1

The financial accounting is recording of business financial transactions, ascertain profit or loss during a specified period, to show financial condition of the business on a particular date and follow all legal and taxation rules and regulations.

The role of financial accounting in a corporate should be :

1. To keep the records of business financial transactions in a chronological order under the defined systematic pattern or standards.
2. To keep proper records of the properties, their current records and estimated future productive period of Plant, Properties and Equipment.
3. To come up with the operational income or loss for all the business activities taken up by the organization.
4. To construct the financial position or balance sheet and other financial statements at a specific point of time during the organization life and provide the requisite informations to the stakeholder of the conern.
5. To gather, arrange and analysis the requisite data for taking important decisions and reporting of the alternatives and the final decision to act upon.
6. To keep the records and documents under good conditions for the defined period by the law of the land.