Accounting is further subdivided into (a) financial accounting and (b) managerial accounting. Financial accounting focuses on conveying relevant data to external parties. Managerial accounting is the subject of other books and other courses. The two branches of accounting have evolved independently over the decades to address the specific needs of the users being served. This textbook is designed to explain those attributes that are fundamental to attaining a usable understanding of financial accounting.
Financial accounting encompasses the rules and procedures to convey financial information about an organization. Individuals who attain a proper level of knowledge of financial accounting can utilize this information to make decisions based on the perceived financial health and outlook.
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