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Financial Accounting refers to the systematic recording, reporting, and analysis of financial transactions of a business enterprise. It encompasses the preparation of financial statements that companies use to show their financial performance and position to people inside and outside the company. Financial accounting follows generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and transparency in financial reporting. The category is concerned with providing a quantitative picture of the financial health of an organization, allowing stakeholders such as investors, creditors, and regulatory bodies to make informed decisions. It includes concepts like double-entry bookkeeping, accrual accounting, balance sheet, income statement, cash flow statement, and financial ratios, forming the foundation for sound financial management and decision making in businesses, stock exchanges, and other financial institutions.