needs and importance of final accounts
Answers
The process of ledger posting or preparation of final accounts is really important as it helps in-
a.to calculate the net effect of various transactions.
b.to get a clear picture of company’s economic situation.
c.to know the investors whether or not to invest in the company.
d.to know the value of closing stock.
e.to ascertain the proprietor's equity.
Needs and importance of final accounts are given below.
To run a business you would like information, records, reports, analysis, and correct info concerning assets, debts, liabilities, and profits; which is why Accounting is Importance for any business activities. The accounting info is incredibly vital for the management or the choice of creating the body of a corporation. Financial position is mirrored by the record.
These are, usually, ready at the shut of the year thus called final accounts. They serve the final word purpose of keeping accounts. Their purpose is to analyze the consequence of assorted incomes and expenses throughout the year and therefore the ensuing profit or loss.