Finalization of Accounts

Question

Accepted Answer

Finalization of accounts refers to the process of completing and closing the financial records of a company for a specific period.

Finalization of accounts involves reviewing and reconciling financial transactions and balances.
It includes preparing financial statements such as the balance sheet, income statement, and cash flow statement.
The process also involves adjusting entries, ensuring compliance with accounting standards, and resolving any discrepancies.
Finalization of accounts is typically done at the end of a financial year or reporting period.
Example: Finalizing accounts for the year 2020-2021 involves analyzing all financial transactions, reconciling bank statements, and preparing the necessary financial statements.

Accepted Answer

Process of finalization of accounts.

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