Question

Define the financial account and explain the users of gaap

Answer 1

That is why GAAP governs the principles and standards of financial accounting. The overall purpose of financial accounting is to create information or financial statements that can be used by all external users to base their financial decisions on whether or not these decisions involve lending money or investing money.

Answer 2

Financial accounting is the area of accounting that focuses on providing external users with useful information. In other words, financial accounting is a way of reporting business activity and financial information to investors, creditors, and other people outside the business organization