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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?

  1. Statement of Profit and Loss

  2. Cash flow statement

  3. Balance sheet

  4. 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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