Question

As per Companies Act, the Balance Sheet of a company is required to be presented in ______.

Options

• Horizontal Form

• Vertical Form

• Either Horizontal or Vertical Form

• Neither of the above

Answer 1

As per Companies Act, the Balance Sheet of a company is required to be presented in vertical form.

Explanation:

As per the Companies Act, 2013 (specifically Schedule III), the Balance Sheet of a company is required to be presented in the Vertical Form only.

• Earlier, under the Companies Act, 1956, companies had the option to use either Horizontal or Vertical Form.
• But under the Companies Act, 2013, only the Vertical Format is prescribed and mandatory.