Financial Analysis

Definition of Financial Analysis as it relates to Business, Financial Management, Equity Research

Financial Accounting refers to the systematic recording, reporting, and analysis of financial transactions of a business. It encompasses the preparation of financial statements that present a company's financial position, performance and cash flows in accordance with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). The primary goal of financial accounting is to provide useful information to external stakeholders, such as investors, creditors, and regulatory bodies, for decision making purposes. It serves as a basis for financial management, equity research and other financial analyses.

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