State the end product of financial accounting.
The end product of financial accounting is the preparation and presentation of financial reports or financial statements. These primarily include the Balance Sheet and the Profit and Loss Account.
These financial statements help in arriving at a measure of organisational success and financial soundness of the business enterprise. They serve the stewardship function and provide essential financial information to all stakeholders, both internal and external users, for making important decisions.
Explanation
The textbook context clearly mentions that financial accounting assists in 'the preparation and presentation of financial reports' to measure organisational success and financial soundness. It also specifically states that external users 'have to rely on financial statements (Balance Sheet, Profit and Loss account)'. These statements are the final output or end product communicated to users in decision-making situations.