Final answer:
Financial accounting information is crucial for investors and regulators, providing a clear picture of a firm's financial health as it grows and seeks investment from those who do not have personal relationships with the management team.
Step-by-step explanation:
The intended users of financial accounting information include investors and regulators. Financial accounting provides standardized information about a company's financial position and performance. This information becomes more critical as a company grows and its operational details become complex. When a firm establishes itself with a strong strategy that seems poised for profits, the need for personal knowledge of the management team lessens.
Instead, financial statements become the primary source of information for outside investors who are interested in the firm's products, revenues, costs, and profits. These investors, such as bondholders and shareholders, who may not have personal connections with the firm's managers, rely on this financial data to make informed decisions about providing financial capital to the company.