Financial accounting is the branch that focuses on the preparation of financial statements that complies with established accounting standards. It deals with historical information, turning them into readable reports for different users – the owners, investors, creditors, etc.
In this section, you will find financial accounting lessons and tutorials. As opposed to managerial accounting, financial accounting requires compliance with established accounting standards. The reports in financial accounting are primarily for external users but can also be for internal use.
Financial accounting focuses on the application of the accounting principles in treating different economic transactions and events.