Intermediate Accounting 1: Exam 1 Chapter 1 and 2 with Complete Solutions | Already Passed

Intermediate Accounting 1: Exam 1 Chapter 1 and 2 with Complete Solutions | Already Passed Describe the function and primary focus of financial accounting - PRIMARY OBJECTIVE: to provide investors and creditors with useful information for decision making -provides information to predict the future risk and potential return of their prospective investments or loans -"Special" language used to communicate financial information to help people inside and outside of the business to make decisions -provides useful information about economic activity to help produce more good decisions and foster a prosperous society -by providing key information to capital market participants, it also plays a VITAL role that helps society's resources to the companies that will utlize those resources most effectively What is the primary focus of financial accounting? - chiefly concerned with providing financial information to various external users *Primary Focus* on the information needs of investors and creditors