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Financial accounting involves the component of the country’s balance of payment that can cover the claims and liabilities related to financial assets. Financial accounts involve the set of processes related to a firm’s everyday transactions, summaries and reports related to the business operations over some time.
The accounting and finance principles involve revenue recognition, historical cost principle, matching principle, objectivity principle and full disclosure principle. The study of financial accounting involves the study related to bookkeeping records, income statements, balance sheets and the principle of double-entry.
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