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

Question

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Financial accounting is primarily focused on the preparation and reporting of financial statements for external users such as investors, creditors, and regulatory agencies, rather than for internal management purposes. Management accounting is the field that deals with the mentioned processes for internal use.

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