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Introduction to Financial statements:Definition and examples

Answer Text:
Introduction to Financial statements:Definition and examples:
Introduction:
-All businesses are set up with the primary objective of making profits.
-A business can determine its profit or loss by preparing financial statements. Therefore financial statements can be defined as: statements that are
prepared to determine overall effects of transactions of a business on the financial position of the business.
-financial statements are also called final accounts and they include;
a) trading account
b)profit and loss account and
c)the balance sheet