Financial accountancy - Definition

Financial Accountancy (or Financial Accounting) is the branch of accounting concerned with the preparation of financial statements for outsider use.

The accounting equation (Assets = Liabilities + Owners’ Equity) and financial statements are the main topics of financial accounting.

A financial accountant must equal assets with liabilities and owner’s equity. The balance sheet (or the statement of financial position) is the financial statement that summarizes the assets, liabilities, and owners’ equity of the company.

External links

• Financial Accounting Standards Board (http://www.fasb.org)
• American Institute of Certified Public Accountants (http://www.aicpa.org)
• International Accounting Standards Board (http://www.iasc.org.uk)