This course is the first in which students majoring in accounting receive the detailed training that will eventually turn them into accounting professionals. Training in financial accounting is the foundation of all accounting education.
Financial accounting is very important to our economy.
Many people, such as investors and lenders, need information to help them make informed decisions. For example, an investor is a person with money who wants additional income. The investor sometimes has the opportunity to buy stock in a particular company. A company prepares financial reports, financial accounting's product, to inform investors and other interested parties about its financial performance. The principal financial reports are the income statement, balance sheet, and statement of cash flows.