Financial Accounting and Analysis

Financial accountancy is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power. The fundamental need for financial accounting is to reduce principal-agent problem by measuring and monitoring agents performance and reporting the results to interested users. An accounting analyst evaluates and interprets public company financial statements. Public companies issue these (10-K) annual financial statements as required by the Security and Exchange Commission. This approach will provide a solid foundation this subject on which the student will continue to build during the remainder of his or her professional life.