why do we prepare final accounts
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Answer:
answer
final account give an idea about the profitability and financial position of the business to its management.
Answer:
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Explanation:
Final accounts give an idea about the profitability and financial position of a business to its management, owners, and other interested parties. All business transactions are first recorded in a Journal. They are then transferred to a Ledger and balanced. These final tallies are prepared for a specific period. The preparation of a final accounting is the last stage of the accounting cycle.It determines the financial position of the business. under this it is compulsory to make trading account, profit and loss account and balance sheet.
The term "final accounts" includes the trading account, the profit and loss account, and the balance sheet. The Companies Act makes it compulsory for companies to maintain certain books of accounts.
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