Which of the following is NOT included in the final accounts of a sole trader?
Practice Questions
1 question
Q1
Which of the following is NOT included in the final accounts of a sole trader?
Profit and Loss Account
Balance Sheet
Cash Flow Statement
Trial Balance
A Cash Flow Statement is not typically included in the final accounts of a sole trader.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is NOT included in the final accounts of a sole trader?
Solution: A Cash Flow Statement is not typically included in the final accounts of a sole trader.
Steps: 5
Step 1: Understand what final accounts are. Final accounts are financial statements that show the performance and position of a business at the end of a financial period.
Step 2: Identify the common components of final accounts for a sole trader. These usually include the Income Statement (Profit and Loss Account) and the Balance Sheet.
Step 3: Recognize what a Cash Flow Statement is. A Cash Flow Statement shows the cash inflows and outflows of a business over a period.
Step 4: Determine if a Cash Flow Statement is included in the final accounts of a sole trader. Typically, it is not included.
Step 5: Conclude that the answer to the question is that a Cash Flow Statement is NOT included in the final accounts of a sole trader.
