1. Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control a company's operations. 2. Financial statements are the principal means through which a company communicates its financial information to those outside it. 3. Users of financial accounting statements have both coinciding and conflicting needs for information of various types. 4. An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit. 5. The objective of financial reporting is to report the plans made by a company to improve the productivity of its employees. 6. Investors are interested in financial reporting because it provides information that is useful for making decisions. 7. Users of financial accounting statements have both coinciding and conflicting needs for information of various types. 8. The Securities and Exchange Commission appointed the Committee on Accounting Procedure. 9. The passage of a new FASB Accounting Standards Update requires the support of five of the seven board members. 10. Statements of Financial Accounting Concepts set forth fundamental objectives and concepts that are used by the FASB in developing future standards of financial accounting and reporting. yw