The correct answer is: A. Format of Balance Sheet
Schedule III Part II of the Companies Act, 2013 deals with the format of the balance sheet of a company. The balance sheet is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time. It is one of the three main financial statements, along with the profit and loss account and the cash flow statement.
The balance sheet is divided into two main sections: the assets section and the liabilities and equity section. The assets section shows the company’s resources, such as cash, accounts receivable, inventory, and property, plant, and equipment. The liabilities section shows the company’s debts, such as accounts payable, notes payable, and long-term debt. The equity section shows the company’s ownership interest, which is the difference between the assets and liabilities.
The balance sheet is a useful tool for investors and creditors to assess a company’s financial health. It can be used to track a company’s performance over time and to compare it to other companies in the same industry. The balance sheet can also be used to identify potential problems, such as excessive debt or a decline in assets.
Here is a brief explanation of each option:
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A. Format of Balance Sheet
The balance sheet is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time. It is one of the three main financial statements, along with the profit and loss account and the cash flow statement. -
B. Format of Profit and Loss Account
The profit and loss account is a financial statement that shows a company’s revenues, expenses, and net income for a specific period of time. It is one of the three main financial statements, along with the balance sheet and the cash flow statement. -
C. Format of Trading Account
The trading account is a financial statement that shows a company’s revenues and expenses from its trading activities for a specific period of time. It is not one of the three main financial statements, but it is often used by companies to track their profitability. -
D. Format of Cash Flow
The cash flow statement is a financial statement that shows a company’s cash inflows and outflows for a specific period of time. It is one of the three main financial statements, along with the balance sheet and the profit and loss account.