Financial Accounting Basics Quiz

Financial accounting summarizes, analyzes, and reports financial transactions related to a business. Stakeholders interested in this information include stockholders, suppliers, banks, employees, government agencies, and business owners for decision-making purposes.

GAAP is the standard framework of guidelines for financial accounting used in any given jurisdiction, while IFRS is a set of accounting standards issued by the International Accounting Standards Board (IASB) stating how particular types of transactions and events should be reported in financial statements.

With IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organizations.

<p>Financial accountancy is governed by both local and international accounting standards. The oversight includes the standards, conventions, and rules that accountants follow in recording, summarizing, and preparing financial statements.</p> Signup and view all the answers

<p>Financial statements are prepared for public use and provide a summary of the financial transactions of a business. These statements are important for stakeholders to make informed decisions.</p> Signup and view all the answers