W6 - PREPARATION OF FINAL ACCOUNTS - PREPARATION OF FINAL...

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Unformatted text preview: PREPARATION OF FINAL ACCOUNTS (FRS 101) FINAL ACCOUNTS Final Accounts consists of: 1. Income Statement 2. Balance Sheet 3. Statement of Cash Flow 4. Statement of Changes in Equity TYPE OF COMPANY Format of Final Accounts will be differ according to the type of company: Service Company Trading Company Manufacturing Company PURPOSE OF INCOME STATEMENT provides a summary of the results of a business's trading activities during a given accounting year. It shows the profit or loss for the year. enable users, such as the owner(s), to evaluate the financial performance of a business. INCOME STMT ITEMS EXPENSES Sacrifice made or the assets consumed to produce revenue. REVENUE Earned when a firm has provided goods and/or services to its customers COST OF GOODS SOLD GROSS/NET PROFIT INCOME STMT FORMAT (service company) ABC Income Statement for the year ended.....
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W6 - PREPARATION OF FINAL ACCOUNTS - PREPARATION OF FINAL...

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