Financial accounting answers these questions. It provides economic and
fi nancial information for investors, creditors, and other external users. The information needs of external users vary considerably. Taxing authorities, such as the
Internal Revenue Service, want to know whether the company complies with tax
laws. Regulatory agencies, such as the Securities and Exchange Commission or
the Federal Trade Commission, want to know whether the company is operating
within prescribed rules. Customers are interested in whether a company like
General Motors will continue to honor product warranties and support its product lines. Labor unions, such as the Major League Baseball Players Association,
want to know whether the owners have the ability to pay increased wages and
benefits