MCQs on Companies Act 2013

Which of the following is NOT a requirement for books of account under Section 128 of the Companies Act, 2013?

• Must be kept on accrual basis.

• Must follow the double-entry system.

• Must be maintained only at the registered office.

• Must give a true and fair view of the company's affairs.

Under Section 128, if a company keeps books of account at a place other than its registered office, it must file a notice with the Registrar within:

• 7 days.

• 15 days.

• 30 days.

• 60 days.

The financial statements of a company must comply with:

• Accounting Standards notified under Section 133.

• Schedule III formats.

• Both (a) and (b).

• Only the Companies Act, 2013.

Which of the following companies is exempt from preparing financial statements as per Section 129?

• Insurance companies.

• Banking companies.

• Companies generating electricity.

• All of the above.

Consolidated financial statements are required for a company with:

• Subsidiaries.

• Associates.

• Joint ventures.

• All of the above.

If a company's financial statements deviate from accounting standards, it must disclose:

• The deviation.

• Reasons for deviation.

• Financial effects of deviation.

• All of the above.

The National Financial Reporting Authority (NFRA) is constituted under:

• Section 128.

• Section 132.

• Section 134.

• Section 138.

NFRA has the power to investigate misconduct by:

• Chartered Accountants.

• Cost Accountants.

• Company Secretaries.

• All of the above.

The Central Government prescribes accounting standards under Section 133 based on recommendations from:

• ICAI.

• NFRA.

• Both (a) and (b).

• SEBI.

The Board's Report must include a Directors' Responsibility Statement under Section 134(5). Which of the following is NOT part of this statement?

• Compliance with accounting standards.

• Adequacy of internal financial controls.

• Dividend recommendations.

• Proper maintenance of accounting records.