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unit-12-basic-concepts-relating-to-final-accounts

Unit-12 Basic Concepts Relating to Final Accounts

In this unit you will learn about the basic accounting concepts or principles which guide the preparation of final accounts.

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What does Balance Sheet reveal? 


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Learning Pundits Content Team

Written on Jun 25, 2019 5:06:37 PM

The profit or loss is determined by preparing a Trading and Profit and Loss Account (also called Income Statement), while the financial position is assessed by preparing a Balance Sheet (also called Position Statement). These two financial statements taken together are termed 'Final Accounts’. Before you can prepare the final accounts properly, it is necessary to understand the basic accounting concepts or principles which guide the preparation of final accounts. In this unit, you will learn about these concepts and study how each concept influences the measurement of income and the financial position of the business.