What is financial accounting? how it is different from cost accounting?

Question: What is financial accounting? how it is different from cost accounting?

Financial accounting is a branch of accounting that focuses on recording and summarizing a company's financial transactions to provide external stakeholders with information for decision-making. It involves preparing financial statements such as balance sheets, income statements, and cash flow statements. Cost accounting, on the other hand, is focused on analyzing and controlling the costs incurred in a company's operations to facilitate internal decision-making. While financial accounting provides information for external stakeholders, cost accounting provides information for internal management to improve efficiency and profitability.