A Comprehensive Guide to Write Financial Accounting Assignment Professionally

Basic Concept Financial Accounting:

Financial Accounting refers to a specialized branch of accounting, which focuses on the financial transactions of a business entity. It is based on standardized guidelines, to record the transactions properly, as well as summarizing and presenting them in a financial statement or financial report. For economic decision making, it is important to evaluate the firms/industry performance and in such point, financial accounting provides a crucial role.

The main motive of financial accounting is to yield the annual financial statements. Financial accounting guides to the business outsiders (stockholders, suppliers, creditors etc., who have a vested interest), to have a look at the current position of the company.

Preparing appropriate financial accounting assignment answers is a little bit complicated process as you have to be a literally and numerically strong grip over the subject. Financial assignment solutions involve basically five components, namely:

• Income Statement
• Statement for changes in Equity
• Balance Sheet
• Statement of Cash Flows
• Notes to Financial Statements

A Brief Summary of Financial Accounting Guidelines:

At first, you should interpret the financial accounting assignment help topics and its work. The primary topics involve:

Debits, Credits, Bookkeeping, General and Subsidiary Ledger, Charts of Accounts, T-Accounts, Double-entry and Single-entry principles, Financial Statements etc. Accounting is not just a complex and dry subject if you get into the fun of various accounting equations. A list of financial accounting guide is provided here:

• Set up an accounting system
• Record the transactions
• Make the entries in the accounts book
• Prepare Trial Balance
• Make Income Statements and Balance Sheet
• Understand the financial statements

The Role of Finance Assignment Solutions:

The importance of financial accounting is to furnish a methodological approach for describing business activities.

Financial reporting is mandatorily required by law for tax purposes. It also gives creditworthiness and integrity of the organization.

It uses the information over the financial year and shows the results of operations and flows of cash to make decisions in regards to the resource allocation.

The solutions must include a set of frameworks, methodologies and suitable assumptions. It will be made according to the financial accounting theory and financial reporting principles.

GAAP (Generally Accepted Accounting Principles) refers to the commonly followed standards and rules of accounting for financial reporting. It involves a lot of concepts, definitions, principles, and industry-specific rules.

Financial accounting assignment answers can also be responded by using the IFRS. IFRS is the acronym of International Financial Reporting Standards, which is used in over more than 110 countries around the globe. On the other hand, GAAP is used primarily in the US.

The accounting function is also responsible for periodically reporting of pecuniary information, preparing monthly statements, investigating variances, if any, assembling and comparing the trends of growth etc.

Step-by-Step Guide to Correspond a Financial Accounting Assignment:

To make a suitable solution to your corresponding financial accounting questions, you should apply the holistic process of Accounting Cycle to record and process the transaction data. Now as a bookkeeper, you have to keep track the accounting cycle from initial to the final stage. Here a brief discussion on the important steps is provided:

1. Transactions: The beginning process of the accounting framework. Transactions may include purchases, acquisitions, sales, expenses incurred, and revenue or debt payoffs.
2. Journals: The next step is to record the financial transactions in the journal book in chronological order. The debiting and crediting process according to the double-entry system must always balance in each account.
3. Ledger Posting: The journal entries are then to be posted in a general ledger. Here the transaction summary of all individual account transactions can be seen.
4. Trial Balance: The total of all credits and debits are to be transferred from the ledger accounts to the sheet of trial balance. The period of preparing the trial balance can be monthly/quarterly/yearly.
5. Worksheet: If debits and credits of trial balance do not match, you have to make a worksheet to look for any errors and corresponding adjustments.
6. Adjusting Entries: At the end of the accounting period, the adjusted entries are to be posted for deferrals and accruals.
7. Preparing Financial Statements: The most important part of accounting includes preparing an income statement, statement of cash flows and balance sheet.
8. Closing the Accounts: At the final stage, the expense and revenue accounts need to be closed as well as zeroed out. Although, balance sheet accounts shall not be closed as they show the financial position at a certain period of time.

You can also prepare a General Ledger and Cash Book to view all financial transactions/cash levels at a time.