CA Inter P2 · Chapter 8 · Question 1 of 10
Under section 128(5), a company must preserve its books of account, together with relevant vouchers, in good order for a period of not less than:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Eight financial years immediately preceding a financial year
Explanation
Section 128(5) requires the books of account of every company relating to a period of not less than eight financial years immediately preceding a financial year to be kept in good order. Where an investigation has been ordered, the Central Government may direct that they be kept for a longer period.
More Accounts of Companies MCQs
- Q3Under section 2(40), which of the following companies may exclude the cash flow statement from its financial statements?
- Q4Under section 129(3), a company must prepare consolidated financial statements in addition to its own financial statements where it has:
- Q5The directors of Iris Ltd discover that its financial statements for one of the three preceding financial years did not comply with…
- Q6Under section 130, the books of account of a company can be reopened and its financial statements recast:
- Q7As per section 134(1), the financial statements of a company that has a managing director, CFO and company secretary (and no…