Similarities & Differences Between Books of Accounts And Financial Statements
Books of Accounts are the first phase of Accounting called Bookkeeping while Financial Statements are the second phase of accounting. In the books of accounts, two main types e.g., Primary and Secondary books of accounts i.e., Journals And Ledgers are prepared while 5 types of Financial Statements i.e., Income Statement, Statement of Financial Position ( B alance Sheet), Statement of Cash Flows, Statement of Retained Earnings and Statement of Changes in Equity are prepared. B ooks of accounts are inter n al records of the company’s business which are disclosed to internal management and not disclosed to public unless it is required by law to do so while financial statements are disclosed to the Users of Financial Statements / Information . Similarities Between Books of Accounts And Financial Statements Both are helpful for the proper mai ntenance of accounting data and information of a company’s business. B oth comp...