Auditing and EthicsMCQQuestion 6199 of 213
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13. Which of the following statements is not correct about Limited Liability Partnership (LLP)? 8 SUGGESTED ANSWER

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — An LLP is required to maintain Statements of costs of goods purchased, inventories, work-in-progress, finished goods and costs of goods sold.

All Options:

  • AAn LLP is required to maintain Statements of costs of goods purchased, inventories, work-in-progress, finished goods and costs of goods sold. ✓
  • BAn LLP is called small LLP, the Turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees (₹ 40,00,000) or such higher amount, not exceeding fifty crore rupees, as may be prescribed;
  • CEvery LLP would be required to file annual return in Form 11 with ROC within 30 days of closer of financial year. The annual return will be available for public inspection on payment of prescribed fees to Registrar.
  • DThe auditor may be appointed by the designated partners of the LLP at any time for the first financial year but before the end of first financial year. (2 Marks)

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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