Question : Assertion: A Purchase of patent is classified as investing activities in case of all enterprises Reason R :- purchased of patent by finance company is classified under financing activities In the context of above two statements, which of the following is correct
Option 1: Assertion A and reason R are correct and reason R is correct explanation of assertion A
Option 2: Assertion A and reason R are correct but reason R is not the correct explanation of Assertion a
Option 3: Both assertion A and reason R are not correct
Option 4: Assertion A is correct but the reason R is not correct
Correct Answer: Assertion A is correct but the reason R is not correct
Solution : Answer = Assertion A is correct, but the reason R is not correct.
Assertion A is correct because the purchase of a patent is typically classified as an investing activity for most enterprises. However, Reason R is incorrect as the classification of the purchase of a patent as financing or investing activities depends on the nature of the business, not specifically whether it's a finance company. Hence, the correct option is 4.
Question : Assertion: A purchase of furniture on credit will not result in flow of cash or cash equivalents Reason R: - purchased of furniture on credit will not involve cash. In the context of above two statements, which of the following is correct
Option 2: Assertion A and reason R are correct but reason R is not the correct explanation of Assertion A
Question : Assertion (A): Purchase of Goodwill is classified as Investing activity in case of all the enterprises
Reason (R): It does not affect cash of the company since there is no payment or receipt in cash.
In the context of above two statements, which of the following is correct?
Option 1: Assertion (A) and Reson (R) are correct but the reason (R) is not the correct explanation of Assertion (A).
Option 2: Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
Option 3: Assertion (A) is correct but the Reason (R) is not correct
Option 4: Assertion (A) is not correct but the Reason (R) is correct
Question : Assertion: A Purchase of fixed assets is an operating activity for Real estate company. Reason: - sale and purchased of fixed assets is the principal revenue producing activities for a real estate company.
In the context of above two statements, which of the following is correct
Option 1: Assertion A and reason R are correct and reason R is the correct explanation of assertion A.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile