Question

What are the need of preparation of financial statements?

Answer 1

Financial Statements Include

Profit and Loss A/C which shows the Financial performance of the business entity

Balance sheet which shows the Financial position of the business entity

Cash Flow Statement ,which depicts the cash inflow and outflow

Answer 2

hello here is your answer

we make financial statement to check the financial position of the company in the market so that we can compare them and get best options.

trading and profit and loss account is made to check the net profit .

balance sheet is made for the total liabilities over total assets present in the business.