Important Points for IC 89 - Management Accounting Exam
Page 7 Of 54
Go to:
Non -life insurers shall prepare Financial Statements as per specified forms such as: Revenue Account, Profit and Loss Account and Balance sheet as per part V in Schedule B of Regulation 3.
Cash Flow Statement is useful in providing users of financial statements with a basis to assess the abilit of the firm to generate cash and cash equivalent and the needs of the firm to utilise those cash flows. The financial decisions that are taken by users require an evaluation of the ability of the firm to generate cash and cash equivalent and the timing and certainty of their generation.
Financial statements of mutual funds or Asset Management Companies are to be prepared in the Schedule III Format and in compliance with all requirements set out in the Schedule III of the Companies Act, 2013.
Liquidity ratios indicate the ability of the firm to meet its current or short-term obligations as and when they become due for payment.
Gross profit is the excess of proceeds of goods sold and services rendered over their cost during a particular period.
MODELEXAM® 
www.realsoftinfoplan.com