Financial Accounting Essentials Quiz

The purpose of financial accounting is to summarize, analyze and report financial transactions related to a business. Interested parties include stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders who use the information 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 stating how particular types of transactions and other events should be reported in financial statements.

IFRS are issued by the International Accounting Standards Board (IASB).

<p>With IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organizations.</p> Signup and view all the answers

<p>Financial accountancy encompasses the preparation of financial statements and is governed by both local and international accounting standards, including Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).</p> Signup and view all the answers