Question

6-1 Discussion: Professional Relevance of Financial Accounting

Previous Next

In this week’s discussion, you will make connections between your chosen field and what you have learned about financial accounting up to this point. This discussion is important practice for the second part of your final project, in which you will analyze the practical applications of financial accounting in terms of how relevant it is to your own professional aspirations.

In your initial post, describe your current or aspiring professional identity, including your career and the field in which you work or hope to work. What sort of transactions would you encounter in that field? What are the impacts of those transactions on the business? List and describe several examples.

Answer 1

Answer :-

Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business.This involves the preparation of financial statements available for public consumption. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes.

My post will be relating to relevance of Fianancial Accounting in the field of Fiancial Analyst in an Investment Bank. Sort of transactions and there impacts are as follows :-

• Perform financial forecasting, reporting, and operational metrics tracking - These Information are extracted based on the Estimates that are provided by the Company on the basis of the Funding that will be reieved or Revenue that will be generated in the future. This plays an important part to analsye the Sharevalue of the company and the viability of the business in the future.
• Analyze financial data – and create financial models for decision support - Finacial model represent performance of financial asset or portfolio of a business, project or an investment. It gives information relating to Profitability and helps in making decision relating to continuance of these business project and Investment
• Report on financial performance and prepare for regular leadership reviews - These Reports prepared on Fiancial performance are helpful for the Top Management and Board to take a much more informed decision.
• Analyze past results, perform variance analysis, identify trends, and make recommendations for improvements - Comparitive analysis can be done from previous years data, trends can be identifed through Financial accounting. These trends depict the behavioural pattern of the Project and accordingly proper decision can be made after observing these trends in the data.
• Evaluate financial performance by comparing and analyzing actual results with plans and forecasts - Plan Vs Actual analaysis can be done for both Revenue as well as Cost and Expenses and can check whether the variances are favourable or not.