AsthaLeader In: 1. Financial Accounting > Financial Statements Explain provisional financial statements? Explain provisional financial statements? Share Facebook You must login to add an answer. Username or email* Password* Captcha* Remember Me! Forgot Password? Need An Account, Sign Up Here 1 Answer Voted Recent Karan B.com and Pursuing ACCA 2021-07-28T09:16:18+00:00Added an answer on July 28, 2021 at 9:16 am This answer was edited. Provisional financial statements are prepared on the basis of past data i.e. for the period which is already over. For example, the bank requested for Q4 financial statement but there were still 15 days left for the quarter to get over. In this case, the business/company will prepare a provisional financial statement. Provisional financial statements can be requested by banks, investors, and large vendors while making decisions regarding business and want current financial statements which can be obtained easily. It is prepared with the help of past actual figures on a particular date or before the end of a financial statement. The main purpose of preparing is to show the company’s financial position on a particular date. Items of the provisional financial statement are assets, liabilities, and equity/capital. 0 Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Related Questions What is not included in Realisation account? What is recorded on the credit side of a Realisation account? Can accounts payable have a debit balance? Why is profit on debit side? Is goodwill a fixed asset? Which of these is a fictitious Asset? What is the best example of accrual accounting?