Financial accounting is a special branch of accounting associating a process of summarizing, reporting and recording the multiple of transactions emerging from business operations over a period of time. These transactions are encapsulated in the formation of financial statements, including the cash flow statement, balance sheet and income statement, that document the company's operating performance over a described period. Financial accounting follows either the cash basis or the accrual basis of accounting. Financial accounting results in the persistence of net income at the basement of the income statements. Liabilities, assets, and equity accounts are described on the balance sheets. The balance sheet forwards financial accounting to proclaim ownership of the company's future economic benefits.