Financial Accounting

Financial accounting is a focused branch of accounting that retains path of a firm's financial transactions. Using standardized rules, the transactions are recorded, summarized, and presented in a financial report or else financial statement such as an income statement or a balance sheet. Businesses matter financial statements on a repetitive schedule. The statements are considered external because they are given to people outdoor of the company, with the prime recipients being owners/stockholders, as well as certain investors. If a company's stock is publicly traded, however, its financial statements (and other financial reporting’s) incline to be extensively spread, and information will likely reach secondary receivers such as competitors, customers, employees, labor organizations, and investment analysts.


Financial Accounting Notes

Following procedure is followed for formation of companies:In the first stage the availability of name is checked from SECP. SECP ensures that two companies with same name do not get registered.In the second stage Memorandum and Articles of Association are prepared and signed by the sponsors (first shareholders) of th... read more

financial accounting

May 10, 2017

There are three major types of companies: Companies Limited by Shares Companies Limited by Guarantee Unlimited Companies Section 15 of the Companies Ordinance 1984 sates: Any three or more persons associated for any legal purpose may, by subscribing their names to a memorandum of association and complying with the re... read more

financial accounting

May 09, 2017

Companies Limited by Shares “Company Limited by Shares" is a company in which the liability of the members (shareholder) of the company is limited to the amount of share capital that they have contributed. This means that the owners will only suffer a loss to the extent of the amount contributed as capital, i... read more

financial accounting

May 07, 2017

Separate Entity Concept forms the base of the accounting principles. It means that for accounting ‘The Business’ is treated independently from The Owners”. This means that even though anything owned by the business belongs to the owners of the business and anything owed by the business is payable by the owners... read more

financial accounting

May 07, 2017

There are two main types of business entities i.e: Profit Oriented or Commercial entities and Non Profit Oriented entities.Profit Oriented / Commercial Entities Profit oriented or commercial entities are those entities where the key aim of carrying out business is to earn profit for the owners of the business. Profit or... read more

financial accounting

May 06, 2017

Financial AccountingProblem 3.5 Campbell Crop Dusting CAMBELL CROP - DUSTING GENERAL JOURNAL Date Account Title & Explanation Debit Credit 01/June/2001 Cash 60000   ... read more

financial accounting

January 20, 2017

If it is imaginable to develop an accounting theory (Hendriksen and McDonald) then how do we approach its development? Research in this area has centered on traditional approaches, regulatory approaches and what has come to be observed as new approaches. Following are the approachesTraditional approachesTraditional appro... read more

financial accounting

May 29, 2017

According to both Hendriksen (1977) and McDonald (1972) the development of an accounting theory should be possible. McDonald argues that a theory must have three elements:Encoding of phenomena to symbolic representationManipulation or combination according to rulesTranslation back to real-world phenomena.... read more

financial accounting

January 22, 2017

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