The main purpose of ___________ accounting is to ascertain profit or loss during a specific period and to show financial position of the business.

Financial

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Management

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Human resource

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Financial
Profit & loss account and balance sheet are prepared on the basis of information available through financial accounting. Profit and loss account shows the profit or loss during a specific period and balance sheet provides the financial position of the firm on a particular date.

Suggest Corrections

Similar questions

______ is prepared to ascertain the financial result of a business operation over a given period of time and ______ shows the financial position of a business at a particular date.

Q. ___________ is generally conducted to ascertain whether the Balance Sheet and Profit & Loss A/c presents a true and fair view of the financial position.

Q. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reasons (R).

Assertion (A) - The income statement and the balance sheet are financial statements that show the cash flows in and out of the business unit.

Reason (R) - The general purpose of financial statements is to show the financial position and performance of a business unit.

In the context of the above two statements, which of the following is correct?

[0.88 marks]

Q. Which of the following financial statements shows the financial position of a business?

Q. Write a word or a phrase or a term which can substitute each one of the following :

A function of management that brings physical, financial and human resources together for better productivity.

Join BYJU'S Learning Program