Statement: The results and position disclosed by final accounts are not exact.

Explanation:

The statement that the results and position disclosed by final accounts are not exact is true. Final accounts are prepared at the end of the accounting period to determine the financial performance and position of a business. However, they are not completely accurate due to several reasons:

1. Estimates and Assumptions:
Final accounts are prepared based on various estimates and assumptions made by the management. For example, the value of inventory may be estimated using different methods such as FIFO (First-In-First-Out) or LIFO (Last-In-First-Out). These estimates can result in variations and may not reflect the actual value of the inventory.

2. Accruals and Provisions:
Final accounts include provisions for expenses that are known to exist but the exact amount is uncertain. For example, a company may make a provision for bad debts to account for potential non-payment by customers. The actual amount of bad debts may vary from the provision made, leading to inaccuracies in the final accounts.

3. Depreciation and Amortization:
Final accounts also account for the depreciation of fixed assets and the amortization of intangible assets. The determination of the depreciation and amortization expense involves assumptions about the useful life and residual value of the assets. These assumptions may not be entirely accurate, resulting in variations in the final accounts.

4. Timing Differences:
Final accounts are prepared based on the accrual basis of accounting, which recognizes revenues and expenses when they are earned or incurred, regardless of the cash flow. However, there may be timing differences between the recognition of revenues and expenses and the actual inflow and outflow of cash. These timing differences can affect the accuracy of the final accounts.

5. Errors and Omissions:
Despite the best efforts of accountants, there is always a possibility of errors and omissions in the preparation of final accounts. Mistakes in recording transactions, incorrect classification of items, or omission of certain transactions can lead to inaccuracies in the final accounts.

Conclusion:
In conclusion, the statement that the results and position disclosed by final accounts are not exact is true. Final accounts are prepared based on estimates, assumptions, accruals, and provisions, and are subject to errors and timing differences. While they provide a reasonable representation of the financial performance and position of a business, they are not completely accurate.