Final answer:
The true statement concerning the preparation of financial statements is that a loss for the year is a credit entry in the statement of profit or loss ledger account.
Step-by-step explanation:
The preparation of financial statements involves certain principles and practices to ensure they accurately reflect the financial position and performance of a business. When considering the true statement among the options given regarding the preparation of financial statements: Statement A is false because the balances on income and expense accounts are not carried forward but are closed to the owner's equity accounts at the end of the accounting period. Statement B is false since asset and liability accounts are not summarized in an additional ledger account but are directly included and reported on the balance sheet (statement of financial position).
Statement C is incorrect because the statement of profit or loss does not present a list of balances but rather reports income and expenses to show a company's profitability over a period. Statement D is true as a loss for the year would indeed be a credit entry on the statement of profit or loss ledger account, based on the double-entry bookkeeping system where debits and credits must balance. The correct statement concerning the preparation of financial statements is option A: The balances on income and expense accounts are brought down at the end of the accounting period to be carried forward to the next accounting period.