What term describes the process of developing accounting information according to standardized principles?

The process of developing accounting information according to standardized principles is referred to as financial accounting. This branch of accounting focuses on the preparation of financial statements that present the economic performance and position of an entity to external stakeholders, such as investors, creditors, and regulatory agencies. Financial accounting adheres to generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability in financial reporting across different organizations.

In contrast, tax accounting is concerned with compliance with tax regulations and laws, and prepares financial information specifically for tax purposes, which may not always follow the broader principles used in financial accounting. Managerial accounting, on the other hand, is geared towards providing information for internal decision-making and strategy formulation within an organization, rather than for external reporting. Cost accounting focuses on capturing, analyzing, and reporting costs associated with production or operations, which is important for budgeting and cost control but does not deal with standardized financial reporting necessary for external stakeholders.