Financial accounting

Financial accounting is measures and records business transactions and provides financial statements that are based on generally accepted accounting principles. It focuses on reporting to external parties such as investors and banks.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Financial accounting. Measures and records business transactions and provides financial statements that are based on generally accepted accounting principles. It focuses on reporting to external parties such as investors and banks.