Financial accounting is the branch that processes historical information about an entity's transactions and summarizes them into reports called general-purpose financial statements. The financial statements are useful to different interested parties, i.e. the owners, banks, suppliers, the government, etc.
Financial accounting use generally accepted accounting principles (GAAP) in determining the treatment of different transactions and in preparing financial statements.
In this series of tutorials, we will define financial accounting, enumerate the qualitative characteristics of financial information, and take a look at accounting standards and principles.