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Final Accounts are prepared so that every entity can know its financial position, by so doing it enables management to know if they are performing well or not. Final accounts stakeholders and those who have interest whether direct and indirect to know how well the entity is performing. Such stakeholders are the media, shareholders, the government and its regulatory bodies like the IRS, vendors, potential investors who might want to invest in the entity in the following year or years down the line.
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Is trial balance prepared before preparation of final accounts?
yes
Why source document important to a business or accounts?
The source documents upon which the accounts are prepared will be evidence that the accounts for the business have been correctly prepared.
Meaning of final account of a company?
Final accounts are the accounts prepared at the final stage to judge the financial position of the business.It consist of Trading and profit and loss account and Balance sheet.It provide necessary information to various interested groups- share holder, investors, creditors..It also known as financial statement.-------by, bhavinpv@gmail.com
What are characteristics of final account?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
Final accounts of a farmer can be prepared under?
single entry method
Is trial balance prepared before preparation of final accounts?
yes
Why final accounts prepared?
The final account is prepared at the end of each year. It is the combination of the income statement and the balance sheet. The final accounting shows a business where is stands financially and can be compared to past years to see if business and profits are up or down.
Why source document important to a business or accounts?
The source documents upon which the accounts are prepared will be evidence that the accounts for the business have been correctly prepared.
What are the characteristics of final accounts?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
Meaning of final account of a company?
Final accounts are the accounts prepared at the final stage to judge the financial position of the business.It consist of Trading and profit and loss account and Balance sheet.It provide necessary information to various interested groups- share holder, investors, creditors..It also known as financial statement.-------by, bhavinpv@gmail.com
What are characteristics of final account?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
What is matching concept?
while preparing final accounts, accounts should show accruals and prepayments.the net amount for the financial year should be shown in the final accounts
Independent branch accounts?
It is a branch which had able to prepare its own accounts on its books then we say that is an independent branch. Accounts prepared by it is technically called as independent branch accounts.
When is a schedule of accounts receivable prepared?
after all current entries are posted
What is the proforma for final accounts?
Trial balance
