Question

Final account in amis and objectives

Answer 1

In a practical sense, the main objective of financial accounting is to accurately prepare an organization's final accounts for a specific period, otherwise known as financial statements. Firms initially began preparing such accounts to provide important information to their shareholders and loan creditors.

Answer 2

Answer:

In a practical sense, the main objective of financial accounting is to accurately prepare an organization's final accounts for a specific period, otherwise known as financial statements. The three primary financial accounts are the income statement, the balance sheet and the statement of cash flows.

Firms initially began preparing such accounts to provide important information to their shareholders and loan creditors. Without reliable information, it is much riskier for lenders to grant capital to a business. In turn, investors and shareholders compare final accounts among different companies to look for higher-quality prospects.

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