2. For most busineess, the final acounts, which are prodused at the end of each financial year, comprise, Trading A/C Profit and loss A/C Balance Sheet

3. Preparation of Final a/c Income statements (trading and profit and loss accounts calculate the gross and net profits or losses based on accounting principles, for a specified period recognise that net profit (or loss) is the increase (or decrease) in the net assets during that period. Balance sheets recognise that they are statements of balances of assets and liabilities on a specified date recognise and define non- current assets ( fixed assets), intangible assets, current assets, current liabilities ( creditors: amounts due within 12 months), long-term liabilities (creditors: amounts due after more than one year), working capital, capital employed and capital owned comment on the inter-relationship of balance sheet items.