Introduction
Accounting is the core of a business or organization as it helps to provide the necessary information which is required to make important economic decisions to ensure the organization or business is moving forward. In the business world, companies are now looking for something to be understood mainly to contribute on its effective business and management progress. The advanced pace in technology and the increasing level of competition among organization structure drastically impacts the position of an accountant. The information required by a company to make decision to make sure it is moving forward is provided by accounting. Both managerial and financial accounting plays a big role by working along to ensure the growth of the organization is in the right path. However, both managerial and financial accounting has its own purpose of improving an organization or a business.
“Earlier financial accounting experiments typically sought to determine whether specific accounting policy choices would affect investors’ decisions.” (Pg778-experimental research) (122words)

Role of Financial Accounting

Every organization or business should be able to know their monetary progress or else they would never be able to evaluate if the business is profitable or the other way around. “The purpose of financial accounting is to provide users of financial statements with information that is useful for efficient decision making.”(accounting for intangible-pg102).It prepares the answers to financial accountants whom are always asked by investors on how the organization or business is growing.

Financial accounting reports the financial activities on the balance sheet and income of the company and cash flow statement. It is one of the limbs in accountancy to prepare financial statements for external decision makers who are implicated in the investment of the business