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Are financial statements usually presented with one year of data or more? Why?

Are financial statements usually presented with one year of data or more? Why?

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Answer #1

Financial statements usually presented with one year of data because as per accounting period concept, actual performance of the business to be measured for a certain accounting period. As we know that business go for a long time but how we can know the progress of the business? That is why we need to prepare financial statements for one year of business data.

So it is clear that financial statements usually presented with one year of data so that such financial statements will show the progress and financial position of the business at a particular date.

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