The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises.

Question

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Financial accounting is concerned with providing financial information to external users such as investors, creditors, and government agencies. This information is used for making investment decisions, assessing the financial health of a company, and ensuring compliance with laws and regulations. Internal users of financial information, such as managers and employees, rely on managerial accounting for decision-making purposes.

The Primary Function of Financial Accounting Is to Provide Relevant