Financial accounting is a branch of accounting that focuses on recording, summarizing, and reporting financial transactions of a business. It provides a clear picture of a company's financial performance and position through standardized reports, such as the balance sheet, income statement, and cash flow statement. These reports are essential for stakeholders, including investors, creditors, and management, to make informed decisions. The primary goal of financial accounting is to ensure transparency and accuracy in financial reporting. It adheres to established guidelines, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), to maintain consistency and comparability across different organizations.