It is not necessary to prepare formal financial statements if a work sheet has been prepared because financial position and profit are shown on the work sheet.

Question

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A worksheet is a tool for preparing financial statements, but it is not a substitute for the formal financial statements (Income Statement, Balance Sheet, etc.) that are required for external reporting and provide a more comprehensive and officially formatted presentation of a company's financial position and performance.

It Is Not Necessary to Prepare Formal Financial Statements If