Question

Why are final accounts important in the construction industry

Answer 1

Hope this will help you.

Explanation:

In Final accounts we prepare trading account, profit and loss account and Balance sheet.

Final accounts are important for construction industry. In construction industry the owner need to know about the expenses incurred in year and what are the incomes related to a particular year. The project of construction industries is usually for more than a year.

So with the help of final account they need not to wait for the completion of project but the ascertain the profit and loss for every year and then take necessary steps.