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Financial Accounting is a procedure that revolves around business activities. It is used in all business organizations. Because it is a branch of accounting, it is completely adaptable. Financial Accounting helps a business understand its daily transactions' performance. As stated above, a procedure entails:
- Identifying business transactions (both credit and cash).
- Classifying daily transactions.
- Recording the transactions according to the rules.
- Summarizing these recorded items to help users of financial statements understand them.
- Preparing the company's business reports.
- Evaluating the company's financial health.
- Using various control strategies to better work.
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