Income Statement Example – Balance Sheet Example - Format - Final Accounts
Final Accounts Include Income Statement and Balance Sheet which are prepared at the end of the accounting period to show financial performance and financial position of the business. Preparing Final Accounts is the fifth step of the Steps in the Accounting Cycl e . Note: There are two Accounting Systems British and American Accounting System In both accounting system the accounting treatments are same and we get the equal answer of our question, but names and presentation of accounts are different. In British System of Accounting Profit and Loss account and Balance Sheet are used for final accounts while in American Accounting System Income Statement are used. Also Now, the name of Income Statement has changed to Statement of Comprehensive Income and Balance Sheet’s name has changed to Statement of Financial Position. What is Income Statement This statement is prepared to show Financial Performance of the business for the Accounting Period....