State what is end product of financial accounting?
The end product of financial accounting are Trading account, Profit and loss account and Balance sheet.
(a) Trading account : Trading account is a statement which is shows the gross profit of business activities during a specific period.
Elements of the Trading Accounts
- Opening Stock.
- Gross Profit.
- Direct Expenses.
- Gross Loss.
- Closing Stock.
- Sales Revenue, etc.
Elements of the Profit and loss account
- Revenue (`"Sales"/"Turnover"`)
- Cost of goods sold (COGS)
- Gross profit (Revenue - COGS)
- Net profit (Gross profit - Expenses)
Elements of the Balance sheet
- net worth or equity