Question

According to the Companies Act 2013, which of the following statement is not correct?

• A. Arrears of fixed cumulative dividends on preference shares shall be disclosed separately.
• B. Bank deposits with more than 12 months maturity shall not be disclosed separately.
• C. Security against the borrowings shall be disclosed separately.
• D. None of the above.

Answer 1

The correct option is B Bank deposits with more than 12 months maturity shall not be disclosed separately.

Notes to accounts give useful information to the decision makers.

Maturity details of Bank Deposits is important since it decides the liquidity position which decides whether to re-classify them into Current asset.