Question

A firm wants to classify its expenses by nature (salaries, depreciation, rent, etc.) in its Income Statement. According to Schedule III of Companies Act, which presentation format is it adopting?

Q: Answer-A firm wants to classify its expenses by nature (salaries, depreciation, rent, etc.) in its Income S...

Classifying expenses by type nature rather than function e.g., admin, selling is known as natural classification and is permitted under Schedule III for companies.

A Functional classification

B Vertical classification

C Natural classification

D Consolidated format

Practice Next

More Accounts Questions

………… of CGST Act, 2017 lists down the activities which shall be treated neither as supply of goods nor as supply of services.
Section 6 of the Negotiable Instrument Act, refers to:
In the context of the Bharat Bond ETF, what does the abbreviation ETF stand for?
What is the taxable event under GST?
What is the minimum Net Owned Fund (NOF) requirement for an Asset Reconstruction Company (ARC) to commence the business of securitisation or asset reconstr...
Which of the following is NOT a characteristic of MIS?
When a bank chooses the wrong strategy or follow a long-term business strategy which might lead to its failure, it is called
Which of the following is true regarding e-invoicing under GST?
Contribution is calculated as:
Which item is recorded as a non-cash transaction?

Hey! Ask a query

A firm wants to classify its expenses by nature (salaries, depreciation, rent, etc.) in its Income Statement. According to Schedule III of Companies Act, which presentation format is it adopting?

Detailed Solution

More Accounts Questions

Hey! Ask a query

Please Register/Login