Welcome to Financial Accounting¶

The Accounting Process¶

“Financial accounting is a financial information system that tracks and records an organization’s business transactions and aggregates them into reports for decision makers both inside and outside the business. A transaction is an event that has consequences for a business’ financial condition. The event could be either external or internal to the business.”
Business transactions are classified as operating, investing and financing.
An auditor must make an independent judgment about the validity of a company’s financial statements.