Financial accounting is one of the human sciences that emerged as a result of individuals interacting with each other, so there was a need for a framework to govern these transactions in the past, such as exchange of goods and barter, but recently, financial science emerged as a result of intellectual development in the money market and investment which led to the severe need for accurate financial and economic information to make the right decisions in the form of financial and accounting reports that illustrate the financial and economic strength of the establishment in the business market and so that the administration can evaluate its position in the market in terms of strength and weakness through a good study of the market and competitors in light of these financial reports, therefore let's review together the most important principles of financial accounting, their definition and what are the objectives of financial accounting

 Financial Accounting Definition

It is the art of measuring and analyzing the business results of the financial firm during a period of time by applying the fundamentals of financial accounting to some of the assumptions, theories and generally accepted financial principles to control the inputs of the financial process of the economic establishment so that we can show transparent and accurate financial reports that are used by the top management of the establishment, And other departments such as management of sales and marketing.

The objectives of the principles of financial accounting

The aim of studying the principles of financial accounting is to understand the fundamentals of financial accounting in light of the intellectual and technological development that occurs in financial accounting and the flexibility to apply accounting principles in accordance with modern accounting standards and discuss this with the various departments in the establishment, which results in an evolution in the financial thinking of the facility, This require an evolution in the financial thinking of the firm in order to keep progress with the fast and modern development of Financial and Accounting Thought. To reach the optimal and correct decision to make the right decision According to the standards in relation to marketing, investment, sales and production to determine the economic strength of the enterprise in the entrepreneurship market among its competitors and its ability to fierce competition in the market and the flexibility of performance to meet market fluctuations through bold and strong decisions that maintain its market and financial position among competitors ;Under the fierce competition in the market entrepreneurship.

What are the principles of financial accounting?

Principles of Financial Accounting

1-The principle of the financial period is the assumption that the financial entity’s activity continues for a long period. Therefore, I can display financial reports at any time and periodically.

2- The principle of revenue is the interview revenue of the entity's expenses in the same period of financial

3- The principle of stability is to use the principles of financial accounting that have been recognized for a long time and that can never be changed.

4- The principle of the interview is to charge the establishment’s financial expenditures on the business’s financial period, regardless of collection or payment.

5- The principle of prudence and caution is not to record the revenue or loss except at the time it occurs during the financial period of the establishment.

6-The principle of transparency is to show all financial information related to the establishment through accurate, clear and transparent financial reports.

7- The principle of informational accuracy is to display only the financial information pertaining to the establishment in the financial statements during the financial period.

8-The principle of independence is that the economic establishment is considered a financially and accounting independent entity from the owners of the establishment.

9-The principle of continuity is the continuation of the economic activity of the financial entity for several years, taking into account market fluctuations.

10-The cost principle is all the expenses incurred by the financial entity until the asset is ready for use to be recorded in the books at cost.

11-The principle of cash is that the monetary unit used in the financial entity in all dealing is money.

Summary of Financial Accounting Principles

 We conclude from all this that the science of financial accounting depends on the fundamentals of financial accounting based on the use of accounting principles by analyzing the assumptions and information used for the financial inputs to produce financial reports and information that the enterprise can through the process of processing this financial information so that we can make correct financial decisions with accuracy and clarity In the future that expresses the facility honestly.

The importance of financial accounting in an organization

One of the basics of financial accounting is the financial inputs and the operation of financial information and financial outputs, which are considered a fundamental and very important pillar in financial accounting. Where the enterprise relies on financial reporting for long-term short-term decisions at the level of all enterprise departments of all kinds, service, industrial, agricultural, marketing and professional or services of other parties not related to the enterprise, such as investors and businessmen.

at the end, we can conclude that we can say that the emergence of financial accounting in the modern era and the rapid development of technology contributed very greatly to the ease of obtaining financial information in a quick way for the process of financial processing that depends on the fundamentals of financial accounting in light of the principles of financial accounting and the framework of the objectives of financial accounting in accordance with standards Accounting agreed upon in advance to show the financial information in the form of financial reports with accurate and very correct results.

Because this information require  decisions, a feasibility study and forecasts for the enterprise that contribute to the continuous development of the economic entity to determine the company's position in the strong and rapidly developing entrepreneurial market in light of information technology to take advantage of these financial reports in building future and current financial plans for all departments in Financial Establishment With its various activities, types, ideas, and knowledge of areas of shortcomings and  strength In order to take appropriate measures with each department separately and discuss them therein to raise the performance of these departments in an effective and organized manner, which increases the firmness of the Establishment in the market and competes strongly and fiercely to stand firmly in the face of its competitors