Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organiza-tion's operations.

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Financial accounting is primarily focused on providing financial information to external users such as investors, creditors, and regulators, rather than internal management. Management accounting is the process that serves the internal management's needs.

Financial Accounting Is the Process of Identifying, Measuring, Analyzing, and Communicating