Financia accounting

What is Financial Accounting
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What is Financial Accounting
My name is (Richardson), and I am currently pursuing an accounting course in one of the local colleges. From a young age, I have always enjoyed working with numbers, but my first encounter with accounting knowledge was in high school when I was introduced to the basic principles of accounting such as the ‘double entry concept’ and how to debit and credit transactions. The lessons were thrilling, and this ignited my passion for accounting. Now that I am in an advanced accounting class, I hope to acquire key accounting skills which will undoubtedly go a long way in propelling my career in the accounting field.
Managers should possess as much accounting information as possible. This is because they drive organizations towards their objectives by making crucial decisions (Spiteri, 2009). The decisions include ensuring that the organization is well financed, investments are made in the right projects and that workers are well managed (Bushman & Smith, 2001). For instance, management can decide to abandon a project that has been making losses for three years in a row. To make such decisions, managers must have some accounting experience and a good understanding of financial statements. Accounting information is also used by other internal users including owners and employees. The owners of a business need to evaluate the performance of their entity. As such, financial reports offer information to the owners or shareholders regarding the profitability of the business and how each division is performing.

The information can also be used to determine the stability of a business. Employees utilize accounting information to assess how well the organization is doing and try to figure out how this will impact their income and job security.
Lastly, accounting information has external users including lenders, suppliers, investors, customers, and the government. All these stakeholders save for the government needs accounting information of an organization to determine its financial soundness before investing in or transacting with the organization. The government needs the information to check whether the entity declared the right amount of taxes.
References
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of Accounting and Economics, 32(1-3), 237-333.
Spiteri, A. (2009). The use of accounting and related information by the boards of directors of Maltese listed companies: an assessment (Bachelor’s thesis, University of Malta).