Financial accounting highlights the stewardship aspect of accounting significantly than the control or decision making aspects of accounting. Financial Accounting is described as origin for the creation of information and the continuous value of information.
After the creation of information, the developed information should be appropriately recorded.
There are three important function in financial accounting, they are:
1. Financial Transaction is only to be recorded,
2. Time relevance of the transaction at the moment of recording,
3. Methodology of recording the transactions- It contains two different systems of accounting, they are:
a. Cash system and
b. Accrual system
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