Which of the following is NOT typically included in the final accounts of a sole trader?
Practice Questions
1 question
Q1
Which of the following is NOT typically included in the final accounts of a sole trader?
Income Statement
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 typically 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 typically 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: Compare the Cash Flow Statement with the common components. Notice that while the Income Statement and Balance Sheet are standard for sole traders, the Cash Flow Statement is not usually included.
Step 5: Conclude that the Cash Flow Statement is NOT typically included in the final accounts of a sole trader.
