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Home Questions U5ZY9Z8KV5
Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Which is true in respect of preparation of financial statements as prescribed under the Schedule III of Companies Act

Options:

Rounding off requirements for various figures is mandatory

Rounding off of figures to be reported in the financial statements is based on the turnover during the year.

Both 1 and 2

None of the above

Correct Answer:

Both 1 and 2

Explanation:

Rounding off figures that are to be reported in the financial statements is based on the size of turnover:
1. Turnover < Rs.100 crore: Nearest hundreds, thousands, lakhs or millions or decimal.
2. Turnover > Rs.100 crore: Nearest lakhs or millions or decimal.

CUET Questions