Financial accounting: Financial accounting is the process of recording, summarizing, and reporting all the transactions in the financial statement of the business over a period of time. The financial statement consists of the balance sheet, income statement, statement of
To Explain: The function and primary focus of financial accounting.
Explanation of Solution
The function of financial accounting is the creation of financial statements, for the use of the management of the company. The primary focus of the financial accounting is the provision of the financial information derived from the financial statements, for the use of the stakeholders of the company, like the investors, creditors, employees, and others.
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