Financial Statement is periodic report prepared from the accounting records of a company.
Formats of Financial Statements
Meaning of Trail Balance: Before using the account Balances to prepare final Accounts, an attempt to prove that that the total of accounts with debit balances is in fact equal to the total of accounts with credit balances. This proof of the equality of debit and credit balances is called a Trial Balance.
INCOME STATEMENTS
There is no legal format for the profit and loss accounts. Therefore, it can be presented in the traditional 'T' form, or vertically, in statement form.
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