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As per the Companies Act, 2013 which of the following statements is false in respect of a Small Company?
- a)Paid up capital is less than Rs. 50,00,000
- b)Public company can be a small company
- c)Turnover is less than Rs. 2,00,00,000
- d)Small company is not required to prepare cash flow statement as a part of financial statements.
Correct answer is option 'B'. Can you explain this answer?
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As per the Companies Act, 2013 which of thefollowing statements is fal...
The correct answer is b because as per the companies act 2013
A public company can never be a small company and therefore option b is false about public company
A public company can never be a small company and therefore option b is false about public company
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As per the Companies Act, 2013 which of thefollowing statements is fal...
Explanation:
Public Company as a Small Company:
- A small company cannot be a public company as per the Companies Act, 2013.
- The Act defines a small company as a private company that meets certain criteria related to paid-up capital, turnover, and other factors.
- Public companies have different compliance requirements compared to private companies, including small companies.
- Therefore, a public company cannot be classified as a small company under the Companies Act, 2013.
Other Criteria for Small Company:
- A small company must meet the following criteria:
- Paid-up capital is less than Rs. 50,00,000
- Turnover is less than Rs. 2,00,00,000
- Other criteria related to borrowing limits, number of shareholders, etc.
- Small companies have certain exemptions and relaxations in compliance requirements compared to larger companies.
- However, they still need to comply with the basic legal and regulatory requirements applicable to all companies.
Importance of Small Company Classification:
- Classifying a company as a small company has implications for its compliance requirements, taxation, reporting standards, etc.
- It is essential for companies to accurately determine their classification based on the criteria specified in the Companies Act, 2013.
- Misclassification can lead to legal and regulatory issues, penalties, and other consequences.
Therefore, the statement that a public company can be classified as a small company is false as per the Companies Act, 2013.
Public Company as a Small Company:
- A small company cannot be a public company as per the Companies Act, 2013.
- The Act defines a small company as a private company that meets certain criteria related to paid-up capital, turnover, and other factors.
- Public companies have different compliance requirements compared to private companies, including small companies.
- Therefore, a public company cannot be classified as a small company under the Companies Act, 2013.
Other Criteria for Small Company:
- A small company must meet the following criteria:
- Paid-up capital is less than Rs. 50,00,000
- Turnover is less than Rs. 2,00,00,000
- Other criteria related to borrowing limits, number of shareholders, etc.
- Small companies have certain exemptions and relaxations in compliance requirements compared to larger companies.
- However, they still need to comply with the basic legal and regulatory requirements applicable to all companies.
Importance of Small Company Classification:
- Classifying a company as a small company has implications for its compliance requirements, taxation, reporting standards, etc.
- It is essential for companies to accurately determine their classification based on the criteria specified in the Companies Act, 2013.
- Misclassification can lead to legal and regulatory issues, penalties, and other consequences.
Therefore, the statement that a public company can be classified as a small company is false as per the Companies Act, 2013.
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As per the Companies Act, 2013 which of thefollowing statements is false in respect of aSmall Company?a)Paid up capital is less than Rs. 50,00,000b)Public company can be a small companyc)Turnover is less than Rs. 2,00,00,000d)Small company is not required to preparecash flow statement as a part of financialstatements.Correct answer is option 'B'. Can you explain this answer?
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As per the Companies Act, 2013 which of thefollowing statements is false in respect of aSmall Company?a)Paid up capital is less than Rs. 50,00,000b)Public company can be a small companyc)Turnover is less than Rs. 2,00,00,000d)Small company is not required to preparecash flow statement as a part of financialstatements.Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about As per the Companies Act, 2013 which of thefollowing statements is false in respect of aSmall Company?a)Paid up capital is less than Rs. 50,00,000b)Public company can be a small companyc)Turnover is less than Rs. 2,00,00,000d)Small company is not required to preparecash flow statement as a part of financialstatements.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for As per the Companies Act, 2013 which of thefollowing statements is false in respect of aSmall Company?a)Paid up capital is less than Rs. 50,00,000b)Public company can be a small companyc)Turnover is less than Rs. 2,00,00,000d)Small company is not required to preparecash flow statement as a part of financialstatements.Correct answer is option 'B'. Can you explain this answer?.
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