Question

Explain the importance and purpose of final account. computer oriented

Answer 1

Financial managers prepare final accounts and corporate balance sheets to get a clear picture of a company's economic situation. They do so in accordance with specific guidelines and standards, the most important of which are generally accepted accounting principles (GAAP) and U.S. Securities and Exchange Commission (SEC) accounting staff bulletins.

Importance

Final accounts and balance sheets help investors make sense of a company's financial condition. They show financiers whether the business is forthcoming with performance data, how it intends to marshal its resources to pound the competition, and the steps it is taking to repay its long-term loans and avoid lender exodus.