Question

States any two objectives of preparing final accounts

Answer 1

1// To know the financial position - - Final accounts main motive is to know the financial position of the business... Every business needs to know its financial position so that s why business prepare trading account and profit and loss account.


2/ To know the profit and loss of the business. - - - Every business wants to know the profit and loss of the business at the end of accounting. Thus every business prepare profit and loss account to know its profit and loss.