Financial Statements of a Company

Topics in this chapter

• Financial Statements Overview
• Balance Sheet Presentation
• Assets, Liabilities And Equity
• Statement Of Profit And Loss
• Measurement And Valuation
• Notes, Disclosures And Contingencies

Cheat sheet

Practice questions

1. Question 1Q-EF5DA8

   As per Schedule III Part I of the Companies Act, 2013, under which major head and sub-head is 'Unpaid Dividend' shown in the Balance Sheet of a company?

   1. A.Non-Current Liabilities, Long-term Provisions
   2. B.Current Liabilities, Other Current Liabilities
   3. C.Current Liabilities, Short-term Provisions
   4. D.Non-Current Liabilities, Other Non-current Liabilities
   See the answer and solution
2. Question 2Q-DF6DEF

   Which of the following items is shown under the sub-head 'Intangible Assets' in the Balance Sheet of a company?

   1. A.Capital Work-in-Progress
   2. B.Mining Rights
   3. C.Stores and Spares
   4. D.Loose Tools
   See the answer and solution
3. Question 3Q-838B4D

   Under which head in the Statement of Profit and Loss of a company is 'Loss on Sale of Machinery' recorded?

   1. A.Cost of Materials Consumed
   2. B.Other Expenses
   3. C.Depreciation and Amortisation Expense
   4. D.Finance Costs
   See the answer and solution
4. Question 4Q-7BE562

   Which of the following is classified as a 'Short-term Provision' in a company's Balance Sheet?

   1. A.Provision for Employee Benefits
   2. B.Provision for Tax
   3. C.General Reserve
   4. D.Capital Redemption Reserve
   See the answer and solution
5. Question 5Q-D09C8C

   In the context of the Statement of Profit and Loss, how are 'Finance Costs' defined or categorized?

   1. A.Only interest paid on bank overdrafts
   2. B.Interest expense, other borrowing costs, and applicable net gain/loss on foreign currency transactions
   3. C.Dividend paid on equity shares and preference shares
   4. D.Brokerage and commission paid on issue of shares
   See the answer and solution