Financial Accounting

Question 1

Generally, financial systems perform two main functions:

Answer 1

financial accounting and management accounting.

Question 2

Financial Accounting

Answer 2

is the important everyday work of recording, classifying, and summarizing the financial transactions of an organization. The main outputs are the annual financial statements: providing a retrospective view used for external accountability.

Question 3

Financial accounting is

Answer 3

especially relevant to donors, funders, and external stakeholders. It is backward-looking, in that it reports the actual numbers. It is often a statutory requirement.

Question 4

Financial accounting Process

Answer 4

checks, records, classifies, and reconciles all financial transactions; summarizes transactions for reports

Question 5

Financial accounting Outputs

Answer 5

financial statements

Question 6

Financial accounting Purpose

Answer 6

external accountability

Question 7

Financial accounting Perspective

Answer 7

backward-looking, objective

Question 8

Financial accounting Statutory obligation?

Answer 8

yes

Question 9

Financial accounting is about recording all the financial transactions that occur on a day-to-day basis. There are many different types of transactions that will need to be tracked and recorded, such as

Answer 9

the purchase of project materials, staff salaries, money received from funders, and many more. These transactions are documented via source documents, which are recorded in the books of original entry, which are, in turn, rolled up into the general ledger.