Preparation and Presentation of Financial Statements MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Preparation and Presentation of Financial Statements, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Preparation and Presentation of Financial Statements MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Preparation and Presentation of Financial Statements mcq questions that explore various aspects of Preparation and Presentation of Financial Statements problems. Each MCQ is crafted to challenge your understanding of Preparation and Presentation of Financial Statements principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Preparation and Presentation of Financial Statements MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Preparation and Presentation of Financial Statements MCQs | Page 11 of 11

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Q101.
What specified forms should life insurers use for preparing Financial Statements?

a.

Form A-RA, Form A-PL, and Form A-BS.

b.

Form RA, Form PL, and Form BS.

c.

Form A-RA, Form PL, and Form BS.

d.

Form A-RA, Form PL, and Form BS, as well as Form RA, Form PL, and Form BS.

Discuss
Answer: (c).Form A-RA, Form PL, and Form BS. Explanation:Life insurers should prepare Financial Statements using specified Forms such as Form A-RA, Form PL, and Form BS.
Q102.
What does the Cash Flow Statement provide users of financial statements with?

a.

It provides information on the Profit and Loss Account.

b.

It provides a basis to assess the ability of the firm to generate cash and cash equivalent.

c.

It provides information on the Balance Sheet.

d.

It provides a basis to assess the firm's long-term investments.

Discuss
Answer: (b).It provides a basis to assess the ability of the firm to generate cash and cash equivalent. Explanation:The Cash Flow Statement provides users of financial statements with a basis to assess the ability of the firm to generate cash and cash equivalent and the needs of the firm to utilize those cash flows.
Q103.
As per Section 129 of the Companies Act, 2013, at every annual general meeting of a company, the ________________________ of the company shall lay before such meeting financial statements for the financial year.

a.

Chairman

b.

Board of Directors (BOD)

c.

Managing Director (MD)

d.

Chief Executive Officer (CEO)

Discuss
Answer: (b).Board of Directors (BOD) Explanation:As per Section 129 of the Companies Act, 2013, at every annual general meeting of a company, the Board of Directors (BOD) of the company shall lay before such meeting financial statements for the financial year.
Q104.
A current asset is expected to be realised within ____ after the reporting date.

a.

Three months

b.

Six months

c.

Twelve months

d.

Twenty four months

Discuss
Answer: (c).Twelve months Explanation:A current asset is expected to be realized within twelve months after the reporting date.
Q105.
The Report of the Auditors on the Financial Statements of every insurer / re-insurer shall be in conformity with the requirements of _____________.

a.

Schedule A

b.

Schedule B

c.

Schedule C

d.

All of the above

Discuss
Answer: (c).Schedule C Explanation:The Report of the Auditors on the Financial Statements of every insurer or re-insurer shall be in conformity with the requirements of Schedule C according to the IRDA (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations, 2002.
Q106.
Non-life insurers shall prepare revenue account as per____________________.

a.

Form PL

b.

Form BS

c.

Form RA

d.

None of the above

Discuss
Answer: (c).Form RA Explanation:Non-life insurers shall prepare the revenue account as per Form RA according to the specified Forms mentioned in the IRDA (Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations, 2002.
Q107.
Financial Statements of mutual funds or Asset Management Companies are to be prepared in the ______________ Format and in compliance with all requirements set out in the _______________________ of the Companies Act, 2013.

a.

Schedule I, Schedule Ill

b.

Schedule II, Schedule Ill

c.

Schedule Ill, Schedule Ill

d.

Schedule I, Schedule II

Discuss
Answer: (c).Schedule Ill, Schedule Ill Explanation:Financial Statements of mutual funds or Asset Management Companies are to be prepared in the Schedule III Format and in compliance with all requirements set out in the Schedule III of the Companies Act, 2013.
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