Page 117 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting

Notes 3. Why should law prescribe format for financial reporting to corporates?
4. What does schedule VI of companies Act 1956 stipulate?
5. How are assets and liabilities of corporate organisations marshalled?
6. Describe the asset side of corporate balance sheet.
7. What are the groupings in liabilities of corporate balance sheet?
8. What, according to you, are the major differences between a corporate and non-corporate
balance sheet?
9. What are the specific features of corporate income statement compared to that of non-
corporates?
10. How are debtors presented in corporate balance sheet?
11. How do corporates income statements differ from that of non-corporate organisations?
12. State the provisions of the Companies Act, 1956, relating to the preparation and presentation
of final accounts.
13. In what aspects do company final accounts differ from final accounts of a sole trader/
partner?

Answers: Self Assessment

1. false 2. true
3. Investors 4. creditor
5. Financial information 6. credit
7. Section 210 8. Registrar of Companies
9. segmental reporting 10. products or services
11. Schedule VI 12. authorized capital
13. Contingent liabilities 14. Fixed assets
15. secured loan 16. unsecured loans
17. true 18. false
19. false 20. auditors
21. financial statements

8.11 Further Readings

Books Chandra, P., Financial Management - Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.
Sudhindra Bhat, Financial Management, New Delhi, Excel Books, 2008.

Van Horne, J.C. and Wachowicz, Jr, J.M., Fundamentals of Financial Management,
New Delhi, Prentice Hall of India Pvt. Ltd., 1996, p. 2.

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