Actually financial accounting statements record all the transactions that occurred in the business, such as sales, purchases, etc. The user will be aware of whether the business made a profit or loss and he'll know how to improve the sale of goods.
Basically, the data recorded in financial accounting which tend to reflect past events is known as Historical data.
The Historical data refers to various information about the company's past events such as the revenues, earnings, stock price etc.
The Historical data helps provides past event or information regarding the company financial position, liquidity, profitability etc.
Through the use of accounting techniques like the ratio analysis, funds flow analyse, cash flow statements, the financial data which become the historical data can be created.
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