Explain the role of
Explanation of Solution
Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of
Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.
The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.
The role of financial reporting is to communicate the information to the users, obtained from the financial statements.
Financial reporting communicates the information obtained from the financial accounting.
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Chapter 1 Solutions
Intermediate Accounting: Reporting And Analysis
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