Match List-I with List-II. Match the statements with their respective…

Match List-I with List-II.

Match the statements with their respective Provisions/ other name

LIST I	LIST II
A) AS-3	(I) Statement of profit & loss
B) Schedule 3 of Companies Act	(II) Cash flow statement
C) Financial status of the undertaking	(III) Final accounts of company
D) Performance report	(IV) Balance sheet

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

A company’s financial statements are set by law and by accounting standards, and each statement answers a different question about the company.

(A) AS-3 — this matches (II) Cash flow statement. Accounting Standard 3 is the standard under which the cash flow statement is prepared.

(B) Schedule 3 of Companies Act — this matches (III) Final accounts of company. Schedule III prescribes the form of the company’s balance sheet and statement of profit and loss, its final accounts.

(C) Financial status of the undertaking — this matches (IV) Balance sheet. The balance sheet shows assets, liabilities and owners’ claims on a date, so it depicts the financial position or status.

(D) Performance report — this matches (I) Statement of profit & loss. It sets revenue against expenses for a period and shows the result of operations.

NCERT (2026-27 edition):
Cash Flow Statement – “… Financial Statements are defined in Companies Act, 2013 (Section 2 (40)] and includes Cash Flow Statement prepared in accordance with Accounting Standard- 3 (AS-3)- Cash Flow Statement.”

NCERT (2026-27 edition):
Types of Financial Statements – “… Every company registered under The Companies Act 2013 shall prepare its balance sheet, statement of profit and loss and notes to account thereto in accordance with the manner prescribed in the revised Schedule III to the Companies Act, 2013 to harmonise the disclosure requirement with the accounting standards and to converge with new reforms.”

NCERT (2026-27 edition):
Summary – “… Balance Sheet: The balance sheet shows all the assets owned by the concern, all the obligations or liabilities payable to outsiders or creditors and claims of the owners on a particular date. It is one of the important statements depicting the financial position or status or strength of an undertaking.”

NCERT (2026-27 edition):
Summary – “… Statement of Profit and Loss: The Statement of profit and loss is prepared for a specific period to determine the operational results of an undertaking. It is a statement of revenue earned and the expenses incurred for earning the revenue. It is a performance report showing the changes in income, expenses, profits and losses as a result of business operations during the year between two balance sheet dates.”