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2. What is Financial Accounting? Financial accounting can be defined as the process of record-keeping, compiling and reporting the multiple transactions of business affairs over a period of time. Financial statements are prepared by the compilation of these transactions comprising the statement of income, balance sheet etc. over a particular span of time. It is considered to be that specific segment of accounting which targets on catering the significant and useful information to the external users. In simpler terms financial accounting can be understood as the way of documenting the business and financial activities to its ultimate users like investors, creditors etc.

3. Components Of A Financial Statement ➔ Statement of the Financial Position ➔ A balance sheet at the end of the monetary year. ➔ A cash flow report for a particular period. ➔ Report of Cash Flow ➔ Report of Comprehensive Income ➔ The income & loss account or profits report over the time.

4. Applications & Uses Of Financial Accounting There are numerous uses of financial accounting such as: The financial accounting supports in obtaining and creating the budgets. Financial statements and reports can be generated with the usage of financial statements to help the companies. The shareholders and investors can acquire full knowledge about the financial activities of the company by aiding financial accounting. ● ● ●

5. Problems Faced By Students In Homework Related To Financial Accounting Lack of conceptual knowledge – In order to complete the assignments and homework related to financial accounting students need to hold the appropriate knowledge about the related concepts. Lack of conceptual knowledge leads to incomplete homework and assignments. Lack of time – Nowadays students are already occupied with numerous academic tasks that they are left with no time to focus on homework. Due to lack of time students cannot complete their homework on time. Weak calculating skills – Assignments related to financial accounting requires good calculations. If a student does not have good calculating abilities then it becomes difficult for him/her to carry on with the given work related to financial accounting. ● ● ●

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