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P2 C3 COMPANY FINAL ACCOUNT — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C3 COMPANY FINAL ACCOUNT1 Mark
Question
State characteristics of financial statements.
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Answer

Following are some of the characteristics of financial statements :
  • Financial statements are called historical statements as they are related to past period.
  • Figures stated in financial statements are expressed in terms of money.
  • Financial statements are based on recorded facts.
  • Profit and loss accounts shows profit or loss for a given period.
  • Balance sheet gives an idea about the financial position of a company.
  • Financial statements are prepared based on generally accepted accounting principles.

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