Question : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as :
Assertion (A) : Sale of Fixed Asset is written under Investing Activity.
Reason (R) : Sale of Fixed asset leads to inflow of Cash.
Option 1: Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Option 3: Assertion (A) is true, but Reason (R) is false
Option 4: Assertion (A) is false, but Reason (R) is true
Correct Answer: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Solution : The buying and selling of long-term assets and other investments that aren't cash equivalents are considered investing activities.
Hence the correct answer is option 2.
Question : Assertion (A): A new business is likely to have lesser goodwill. Reason (R): Goodwill is an intangible asset.
Question : Assertion: Physical capital is tangible in nature Reason: Physical capital can be seen and touchable.
Question : In the following question, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A) : Depreciation is added to the net profit before tax.
Reason (R) : Depreciation is an Non cash Item which is
Question : Assertion (A): Investing in education and health are important factors in the development of human capital. Reason (R): The formation of human capital is continual and ongoing
Question : Assertion (A): Complementary goods have joint demand. Reason (R): In order to fulfill a specific need, complementary commodities are simultaneously desired.
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