Financial Statements of a Company

In the Statement of Profit and Loss, "Expenses" are broadly divided into specific categories as per Schedule III. Which of the following is NOT one of those standard line items?

1. Cost of Materials Consumed
2. Employee Benefit Expenses
3. Depreciation and Amortization Expenses
4. Distribution of Dividend Expense

Which item is classified under "Other Current Assets" according to Schedule III of the Companies Act, 2013?

1. Prepaid Expenses
2. Accrued Interest on Investments
3. Advance Tax Paid
4. All of the above

Which of the following is NOT a heading under "Shareholders' Funds" in Schedule III of the Companies Act, 2013?

1. Share Capital
2. Reserves and Surplus
3. Money Received Against Share Warrants
4. Share Application Money Pending Allotment

Where will you disclose "Matured Debentures and Interest Accrued Thereon" in a company's Balance Sheet?

1. Non-Current Liabilities – Long-Term Borrowings
2. Current Liabilities – Short-Term Borrowings
3. Current Liabilities – Other Current Liabilities
4. Current Liabilities – Trade Payables

Under which head is "Proposed Dividend for the Current Year" shown in the financial statements of a company?

1. Current Liabilities – Short-Term Provisions
2. Footnote as a Contingent Liability
3. Shareholders' Funds – Reserves and Surplus
4. Current Liabilities – Other Current Liabilities

How is "Discount on Issue of Shares/Debentures" (to be written off after 12 months) presented in the Balance Sheet under Schedule III?

1. Current Assets – Other Current Assets
2. Non-Current Assets – Other Non-Current Assets
3. Deducted under Reserves and Surplus
4. It is no longer shown in the Balance Sheet as per accounting standards

Where is "Premium on Redemption of Debentures" disclosed in the Balance Sheet if debentures are redeemable after 3 years?

1. Non-Current Liabilities – Other Long-Term Liabilities
2. Current Liabilities – Other Current Liabilities
3. Non-Current Liabilities – Long-Term Provisions
4. Shareholders' Funds – Reserves and Surplus

In a company's Statement of Profit and Loss, "Finance Costs" includes which of the following items?

1. Interest paid on Bank Loan and Debentures
2. Bank charges incurred for regular transactions
3. Loss on sale of old office equipment
4. Underwriting Commission paid on issue of shares

Under Schedule III, Part II (Statement of Profit and Loss), where is "Gain on Sale of Fixed Assets" shown?

1. Revenue from Operations
2. Other Income
3. Exceptional Items
4. Extra-ordinary Items

Which of the following items is included under the heading "Cash and Cash Equivalents" in the Balance Sheet of a company?

1. Marketable Securities with maturity up to 3 months
2. Cheques and Drafts on Hand
3. Balances with Banks
4. All of the above

How is "Provision for Tax" presented in the Balance Sheet of a company prepared according to Schedule III?

1. Current Liabilities – Short-Term Provisions
2. Non-Current Liabilities – Long-Term Provisions
3. Current Liabilities – Other Current Liabilities
4. Deducted directly from Cash and Cash Equivalents

Under which sub-head of "Non-Current Assets" are "Computer Software" and "Trademarks" classified in a company's Balance Sheet?

1. Property, Plant and Equipment
2. Intangible Assets
3. Capital Work-in-Progress
4. Intangible Assets Under Development

Where should "Loose Tools" and "Stores and Spares" be presented in the Balance Sheet of a company?

1. Property, Plant and Equipment and Intangible Assets – Property, Plant and Equipment
2. Current Assets – Inventories
3. Current Assets – Other Current Assets
4. Non-Current Assets – Other Non-Current Assets

According to Schedule III of the Companies Act, 2013, under which head should "Call-in-Advance" be shown on the Equity and Liabilities side of the Balance Sheet?

1. Shareholders' Funds
2. Non-Current Liabilities
3. Current Liabilities
4. Deducted from Subscribed Capital

Under which head and sub-head is "Unclaimed Dividend" disclosed in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013?

1. Current Liabilities – Other Current Liabilities
2. Non-Current Liabilities – Other Long-Term Liabilities
3. Current Liabilities – Short-Term Provisions
4. Shareholders' Funds – Reserves and Surplus