Essay on Financial Statements Of A Supermarket Company
Purpose of Final Accounts The financial statements of an organization made up at the end of an accounting period, usually the fiscal year (Anoymity, 2015). The three statements link together to show a lot of information about a business, but to make a comprehensive judgement there needs to be information about aims and policies. These are called final accounts because they are the last accounts, prepared at the end of the year. They serve the ultimate purpose of keeping accounts. Their purpose is to analyze the effect of various income and expenses during the year and the resultant profit or loss (Anoymity, 2015).
Trading account: It shows gross profit/loss of the business.
(ii) Profit & loss account: It shows the net profit/loss of the business.
(iii) Balance sheet: It shows the financial position of the business.
The range of Stakeholder for final account
In fact, only financial experts understand final account. For a company, stakeholders divided two parts, internal stakeholder and external stakeholder.
Internal stakeholder: Owner and employees who are work for company or related directly to company. They can know the situation…