This subsystem deals with the preparation of Profit and Loss accounts, Balance Sheet and Cash Flow statements for reporting purposes.

The subsystem that prepares Profit and Loss accounts, Balance Sheet, and Cash Flow statements is the Final Accounts Sub System.

The Final Accounts Sub System is specifically designed to consolidate all accounting data and prepare the final financial statements required for reporting to external stakeholders like investors, creditors, regulatory authorities, and management.

The Profit and Loss Account shows the financial performance (revenue and expenses) for a period, the Balance Sheet shows the financial position (assets, liabilities, and equity) at a point in time, and the Cash Flow Statement shows the cash inflows and outflows during the period. Together, these three statements form the complete set of final accounts.

The other subsystems serve different purposes: Expense Accounting deals only with expense recording and control, Tax Accounting handles tax computations and compliance, and Costing Sub System focuses on cost determination and analysis for internal decision-making rather than external reporting.

Correct Answer: Option 3 - Final Accounts Sub System