Final answer:
Financial accounting information is primarily designed to aid investors and creditors by providing them with a clear view of a company's financial health and future profit potential. It consists of financial statements that help assess the risk and return of investing in or lending to a firm. It is not a substitute for tax forms and is applicable to anyone with financial interests in a company.
Step-by-step explanation:
Financial accounting information is designed to assist investors and creditors in making investment and credit decisions. This type of information typically includes details about a company's financial performance and position, represented in financial statements such as the balance sheet, income statement, and statement of cash flows. These financial statements provide a snapshot of the company's operations and its financial health, which is valuable for investors and creditors to assess the firm's potential for future profitability and its ability to repay debts.
Financial accounting is not submitted to the IRS in lieu of a tax form; rather, tax forms like the 1040 form are distinct documents that must be filed with the IRS for tax purposes. Information from financial accounting may inform what gets reported on a tax form, but they serve different purposes. Moreover, financial accounting is not referred to as 'special-purpose' accounting information; that term is more typically associated with information prepared for a specific reason or user. Finally, financial accounting concepts can be relevant to individuals, especially those who invest or extend credit, although individual financial accounting has its own set of rules and considerations.