Question

Preparation of final accounts is the __________ step of accounting.

• A. first
• B. middle
• C. last
• D. none of the above

Answer 1

The correct option is D none of the above

Final accounts includes preparation of tading account along with profit & loss account and the last balances to be shown in balance sheet.

It is the last step of accounting because once the balnnce sheet of any firm is prepared all the liabilities and assets are valued for the final time and any change in their value is either ignored or rectified using adjusting journal entry. Thus, no other account is altered in any of the situations. Hence, it is the last step of accounting cycle.