Question

Financial statements are usually prepared at the _______ of financial year.

• A. End
• B. Beginning
• C. Middle
• D. None of the above

Answer 1

The correct option is A End

To know the financial position of the business, financial statements are prepared. Normally the financial statements are prepared at the end of the financial year.

Financial statements includes the following:

Trading, Profit & Loss A/c - To know the profitability of the business.

Balance Sheet- To know the position of assets and liabilities of the firm.

Fund Flow Analysis- To know the movement of fund during the year.