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Financial accounting ( or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption.
Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people. The fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner' s equity of a person or business.
It is the foundation for the double- entry bookkeeping system.
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