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The lesson contrasts the statutory obligations of corporates with those of unincorporated forms when it comes to preparing final accounts. Which statement correctly captures the contrast cited in the lesson?
Answer & Solution
Correct answer: B.
1. The lesson contrasts statutory obligations across business forms.
2. Sole proprietorships and partnership firms have no legal obligation to prepare final accounts.
3. Companies, in contrast, are statutorily obliged to keep proper books and prepare final accounts annually.
4. SEBI filing applies to listed companies, not partnership firms; the Registrar-of-Firms and Gazette obligations do not exist.
_Source: ICSI CS Executive Paper 5 (Corporate and Management Accounting) — Lesson 1 & 2: Introduction to Financial and Corporate Accounting, pp. v–vii and x._
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