Forecasting
Financial accounting primarily focuses on recording, summarizing, and reporting financial transactions of a business. Forecasting, on the other hand, involves predicting future trends and outcomes based on historical data and various assumptions. It is not a direct function of financial accounting but rather a separate analytical process that utilizes financial information.
Financial accounting serves the following key functions:

Keeping Systematic Recording
One of the primary functions of financial accounting is to keep systematic and accurate records of all financial transactions of a business. This includes recording income, expenses, assets, liabilities, and equity in a structured manner to provide a clear picture of the financial position of the company.

Meeting Legal Requirements
Financial accounting ensures compliance with legal requirements and standards set by regulatory bodies such as the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). By following Generally Accepted Accounting Principles (GAAP), companies can provide reliable and transparent financial information to stakeholders.

Communicating Business Results
Financial accounting plays a crucial role in communicating the financial performance and results of a business to various stakeholders such as investors, creditors, management, and government agencies. Through financial statements like the income statement, balance sheet, and cash flow statement, businesses can convey important financial information in a standardized format.
In conclusion, while forecasting is an important aspect of financial management, it is not a direct function of financial accounting. Financial accounting focuses on recording, summarizing, and reporting financial transactions to provide accurate and reliable information for decision-making and compliance purposes.

B. meeting legal requirements