Financial accounting

The essential characteristics of accounting are:
1. Identification, measurement and communication of financial information about
2. Economic entities to
3. Interested parties.

Financial accounting is the process that cultiminates in the preparation of financial reports on the enterprise as a whole for use by both internal and external parties.

Users of these financial reports include investors,creditors, managers, union and government agencies.

In contrast, managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate and control an organization's operations.

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