The primary function of accounting is to provide useful financial information to those who are both internal to and external to the business. The internal users include managers and employees. The external users include investors, creditors, suppliers, etc.
Financial accounting is primarily aimed at the external users. These external users make resource allocation decisions that impact both the domestic economy and the global economy.
This chapter presents information related to the usefulness of financial accounting and the accounting standard setting process. In addition, it introduces the conceptual framework that defines the elements of financial statements, provides the objective and qualitative characteristics of financial accounting, discusses the assumptions underlying Generally Accepted Accounting Principles, and describes the recognition, measurement and disclosure concepts that guide accounting practice.
The Chapter 1 narrated PowerPoint lecture, along with narrated solutions to select exercises can be found here. This content can be viewed on both a computer and an iPad. You will need to download the “Articulate Mobile Player” app to view the content on the iPad.