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Financial accounting - Financial definition

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Concise definition of the term financial accounting

The term financial accounting describes the activities of identifying, recording, summarizing and analyzing an entity's financial transactions as well as the process of reporting them in financial statements.

Comprehensive definition of the term financial accounting

Financial accounting is actually one of several branches of accounting, although the latter is often used as a proxy for the former; other branches include:
  • managerial accounting
  • bookkeeping
  • audit
  • tax accounting
  • forensic accounting

Additional information related to this definition

Definition of related term

Browse the financial glossary in alphabetical order