Financial accounting is a specialized branch of accounting focused on the systematic process of summarizing, analyzing, and reporting financial transaction data within a business context. A central function of this field is the preparation of financial statements for external stakeholders, ensuring transparency and compliance with accounting standards. Financial accounting practices are governed by both local and international accounting standards, with the Generally Accepted Accounting Principles (GAAP) serving as a foundational framework of guidelines. The information generated through financial accounting is crucial for a wide range of stakeholders, including shareholders, bankers, suppliers, business owners, and government agencies. The book studies, analyses and uphold the pillars of financial accounting and its utmost significance in modern times. Also included in this book is a detailed explanation of the various concepts and applications of the subject. This book will serve as a reference to a broad spectrum of readers.