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Final Accounts of Companies

ICSE · Class 12 · Accountancy

Flashcards for Final Accounts of Companies — ICSE Class 12 Accountancy. Quick Q&A cards covering key concepts, definitions, and formulas.

45 questions40 flashcards5 concepts

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40 Flashcards
Card 1Meaning of Final Accounts

What are final accounts or financial statements?

Answer

Final accounts, or financial statements, are the final product of the accounting process for an accounting period. They show the financial position and the results of business activities for that peri

Card 2Types of Final Accounts

Which two statements generally make up the final accounts of a company?

Answer

The two main statements are the Profit and Loss Account, also called the Income Statement or Statement of Profit and Loss, and the Balance Sheet.

Card 3Balance Sheet

What does the Balance Sheet show?

Answer

The Balance Sheet shows the total of assets, liabilities, and capital of an enterprise at a given date. It is also called the Position Statement or Statement of Financial Position.

Card 4Profit and Loss Account

Why is the Profit and Loss Account important in final accounts?

Answer

The Profit and Loss Account shows the profit or loss from business operations for a specified accounting period. It helps find the result of business activities before the financial position is shown

Card 5General Principles

What are the three general principles for maintaining books of accounts in a company?

Answer

A company must keep books according to the double entry system, on accrual basis of accounting, and in a way that gives a true and fair view of the financial position of the company.

Card 6Section 2(40)

What does Section 2(40) of the Companies Act, 2013 include in the meaning of financial statement?

Answer

Financial statement includes the Balance Sheet, Profit and Loss Account or Income and Expenditure Account for a not-for-profit company, Cash Flow Statement, Statement of Changes in Equity if applicabl

Card 7Section 2(41)

What is the meaning of financial year for a company under the Companies Act, 2013?

Answer

Financial year ends on 31st March every year. If a company is incorporated on or after 1st January, then the financial year ends on 31st March of the following year. The accounting year is 1st April t

Card 8Section 129

What does Section 129 of the Companies Act, 2013 require a company to do at the end of every financial year?

Answer

Every company must prepare final accounts at the end of every financial year and present them by the Board of Directors before the shareholders for approval at the annual general meeting. The auditor'

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Frequently Asked Questions

What are the important topics in Final Accounts of Companies for ICSE Class 12 Accountancy?
Key topics in Final Accounts of Companies include Mind map showing the components of final accounts and what each contains, Flowchart showing how accounting principles are applied from transaction to final accounts, Timeline showing the financial year cycle and when final accounts are prepared. These are the concepts ICSE Class 12 examiners draw on most — study them first, then practise related questions.
How to score full marks in Final Accounts of Companies — ICSE Class 12 Accountancy?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many flashcards are available for Final Accounts of Companies?
There are 40 flashcards for Final Accounts of Companies covering key definitions, formulas, and concepts. Use them daily for 10–15 minutes for best results.

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Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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