Question

Consider the following statements.

Statement 1 - "Financial statements are the end products of accounting process"

Statement 2 - "Financial statements are not the end products of accounting process"

Options

• Only statement 1 is correct.

• Only statement 2 is correct.

• Both the statement are incorrect.

• None of these

Answer 1

Only statement 1 is correct.

Explanation:

Financial statements are the final products of the accounting process that reflect the financial outcomes of a specific period as well as the financial status as of a specific date. They are general-purpose financial statements that every corporate undertaking prepares and publishes for the benefit of all parties involved. The income statement and balance sheet are examples of these statements.