Chapter 1 What Is Financial Accounting, and Why Is It Important? Section 1 True/False Questions 1. Financial accounting is limited to analyzing the financial information conveyed through financial statements. False; Easy 2. The knowledge of financial accounting can assist people with decisions such as whether to extend credit to a business. True; Easy 3. Employees of a company would not have a reason to use the information provided by financial accounting. False; Easy 4. Financial accounting should be used for assessing the financial health of large organizations only. False; Moderate 5. Financial accounting can be helpful for a job candidate who is assessing the financial future of a potential employer. True; Easy 6. Lenders might use the information produced by financial accounting when making loan decisions. True; Easy 7. Credit analysts prefer not to use information provided by financial accounting, as it is not accurate. False; Easy 8. Financial accounting is helpful to investment advisors. True; Easy 9. Financial accounting i