What does FA Stand for?

FA stands for Financial accounting.

Define Financial Accounting?

 financial accounting is defined as the ''accounting information such as financial statements that are publically available &  specially prepared for external users'' i.e Suppliers, Government, Customers & investors. They are the users of financial information.

FA- financial accounting? 

 Why financial accounts are prepared?

Financial accounts are prepared for externals such as investors & financial institutions so they can review the status of the company and make a decision according to the reports.

why financial accounting is important?

To maintain financial records most important thing is if we have a financial record we can review the position and can compare our performance so we will analyze the weak areas work on them and make improvements. Without the financial record, this is not possible.

How to record Financial Accounting?

There are many ways to record financial records such as, 

  • General form: We can record the financial information in General form but To record the financial information in general form is complex and lengthy so we should move towards Ledger.
  •  Ledger form: We prefer ledger record financial information is better than General form because in ledger there is a classification of every head individually like purchases, sales, returns, etc. these heads are individually classified in ledger form of records.
  •  Trial Balance: If we want to make it more simple and more clear records we prefer to maintain records in Trial balance where there are more classified & more concisely recorded all the information which is easily understandable.