The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities.

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Financial accounting is concerned with providing financial information to external parties such as investors, creditors, regulators, and the public at large. The financial statements that are prepared under financial accounting are intended to provide a comprehensive summary of an organization's financial position, performance, and cash flows. This information is used by external users to make informed decisions about the organization, including whether to invest in it, lend money to it, or regulate its activities.

The Primary Objective of Financial Accounting Is to Provide General