Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

What does the information about activities of the business affecting society in financial statements disclose?

Options:

Financial disclosures about corporate social responsibility initiatives

Information about political contributions made by the company

Economic impact reports

Social media engagement metrics

Correct Answer:

Financial disclosures about corporate social responsibility initiatives

Explanation:

It is essential for financial statements to disclose the business organization's activities that impact society. These activities should be identifiable, describable, measurable, and significant within the company's social environment.