Which of the following is NOT typically included in final accounts?
Practice Questions
1 question
Q1
Which of the following is NOT typically included in final accounts?
Balance sheet
Income statement
Cash flow statement
Journal entries
Journal entries are not included in final accounts; they are used to record transactions before preparing final accounts.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is NOT typically included in final accounts?
Solution: Journal entries are not included in final accounts; they are used to record transactions before preparing final accounts.
Steps: 5
Step 1: Understand what final accounts are. Final accounts are financial statements prepared at the end of an accounting period to summarize the financial position of a business.
Step 2: Identify the components of final accounts. Final accounts typically include the income statement, balance sheet, and cash flow statement.
Step 3: Recognize what journal entries are. Journal entries are records of individual transactions that occur in a business.
Step 4: Determine the purpose of journal entries. Journal entries are used to keep track of all transactions before they are summarized in final accounts.
Step 5: Conclude that journal entries are not included in final accounts because they are preliminary records, not final summaries.
