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Financial accounting is the process of recording, summarizing, and reporting a company's business transactions to create financial statements, such as the income statement, balance sheet, and cash flow statement. These statements provide external stakeholders like investors, lenders, and regulatory bodies with a consistent and reliable view of a company's financial health, performance, and position over a period of time. Financial accounting adheres to standards like Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) to ensure comparability and transparency
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