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easyMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

Which of the following is NOT a feature of financial statements?

  1. A
    To provide information about the earning capacity of the business
  2. B
    To provide information about cash flows
  3. C
    To judge the effectiveness of management
  4. D
    Not disclosing accounting policies

Solution & Step-by-step Explanation

Disclosing critical accounting policies is a mandatory legal core feature of preparing corporate financial statements (under standard accounting frameworks and AS-1/Ind AS-1). Therefore, "Not disclosing accounting policies" is incorrect and serves as the right choice.

Practice this question

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Which of the following is NOT a feature of financial statements?
A
To provide information about the earning capacity of the business
B
To provide information about cash flows
C
To judge the effectiveness of management
D
Not disclosing accounting policies

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