Specifically known as Annual Accounts, these are accounts that depict progress of a business institution, profit and loss associated with a firm and its current financial position at a certain time period. This is generally summarised over a period of one year.

Its primary function is to provide adequate information to management and concerned parties at the end of a specific time period. Being the final step in accounting process, it is divided into:

• Balance sheet
• Profit and Loss account
• Trading account

It is only after Trial Balance that this account is prepared.

Links of Previous Main Topic:-

• Preparation of final accounts
• Recording of business transaction basis of accounting
• Single entry system of bookkeeping
• Double entry system of bookkeeping
• Classification of accounts
• Rules of double entry or accounting rules
• Accounting cycle
• Journal
• Ledger
• Trial balance
• Income
• Expenditure
• Assets
• Liabilities

Links of Next Financial Accounting Topics:-

• Trading account
• Profit and loss account
• Balance sheet
• Adjustments in financial accounting

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