alleryStart learning →Directors state their judgments and estimates are of what kind?
AApproved by the auditor
BUniform and fixed
CAggressive and optimistic
DReasonable and prudent
Answer & Solution
Correct answer: D. Reasonable and prudent
Judgments and estimates must be reasonable and prudent so as to give a true and fair view.
Keep practising Accounts of Companies
Browse all Accounts of Companies questions for CA Inter, or explore more Law topics.
Related questions
If statements are not adopted at the AGM, how does the Registrar take them on record?A One Person Company files adopted statements within how many days of financial year closuWithin how many days of the AGM must adopted financial statements be filed with the RegistWhat penalty applies to the company for default under Section 136?Copies of audited financial statements reach members at least how many days before the meeIf the earmarked CSR amount is not spent, what must the Board do?For CSR spending, preference is given to which area?CSR activities in the policy must be those specified in which Schedule?