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Home Questions MMV9PSHE9Y
Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Assertion: Rounding off requirements is voluntary while preparing books of accounts as per Schedule III of the Companies Act, 2013.
Reasoning: Vertical format for presentation of financial statement is prescribed as per Schedule III of the Companies Act, 2013.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Assertion (A) is not true but Reasoning (R) is correct.

Explanation:

Rounding off requirements is Mandatory while preparing books of accounts as per Schedule III of the Companies Act, 2013.

Vertical format for presentation of financial statement is prescribed  as per Schedule III of the Companies Act, 2013.

 

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