1.

State characteristics of financial statements.

Answer»

Following are some of the characteristics of financial statements :

  • Financial statements are called historical statements as they are related to past period.
  • Figures stated in financial statements are expressed in terms of money.
  • Financial statements are based on recorded facts.
  • Profit and loss accounts shows profit or loss for a given period.
  • Balance sheet gives an idea about the financial position of a company.
  • Financial statements are prepared based on generally accepted accounting principles.


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