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Financial accounting: The focus of financial accounting is specifically on transactions in the financial sector. It creates financial statements that reveal the financial situation and performance of the financials of the business.
Financial statements are records written which document the business operations and financial performance of an organization.
Here is the answer to the above question:
3. The main object of financial accounting is: C. Provide financial statements to help external users analyze and interpret an entity’s activities.
Explanation: Accounting is designed to give the necessary information for economic decision-making. Financial accounting’s main purpose is to provide financial reports to investors, creditors, tax authorities, and other parties. Managerial accounting differs from financial accounting in that it is used for internal decision-making and doesn’t have to adhere to any standard-setting bodies. Financial accounting is done according to Generally Accepted Accounting Principles.
4. The following finackafi statements cover a period of time: A. 1 and 2 ( Income steetmens and statement of changes in equity )
The income statement is different from the balance sheet. It covers a period of time. For example, a year for financial statements that are annual and a quarter for financial statements that are quarterly. The income statement gives an overview of revenues and expenses as well as net income and earnings per share. For comparison, it usually includes two to three years’ worth of data.
An income statement is one the most important financial statements that a company uses to report its financial performance during a particular accounting period. The income statement, also known as the profit-and-loss statement or the statement revenue and expense is a statement that focuses on the company’s revenues during a specific period.
After subtracting revenues from expenses, the statement gives net income.
Statement of equity changes shows the link between the income statement and the balance sheet. It also displays transactions that aren’t shown on the income statement and balance sheet, such as owner withdrawals and dividend paid.