Under Schedule III to the Companies Act, 2013, which financial statement reports a company’s income and expenses for the reporting period?
Question and options
Under Schedule III to the Companies Act, 2013, which financial statement reports a company’s income and expenses for the reporting period?
Statement of Profit and Loss
Cash flow statement
Balance sheet
Statement of changes in equity
Answer and explanation
Correct answer: A - Statement of Profit and Loss
The Statement of Profit and Loss, whose format Schedule III sets out, reports revenue, expenses and the resulting profit or loss for the period. The balance sheet shows financial position at the period end, the cash flow statement shows cash movements, and the statement of changes in equity shows movements in equity.
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