Question : Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R) :
Assertion (A): In case of shares issued on Pro-rata basis, excess money received at the time of application can be utilised till allotment only.
Reason (R): Company has to pay interest on calls in advance @ 12% p.a. for amounts adjusted towards calls (if any). In the context of the above two statements, which of the following is correct?
Option 1: Both (A) and (R) are true, but (R) is not the explanation of Assertion (A).
Option 2: Both (A) and (R) are true, but (R) is a correct explanation of (A).
Option 3: Both (A) and (R) are false.
Option 4: (A) is false, but (R) is true.
Correct Answer: (A) is false, but (R) is true.
Solution : Answer = (A) is false, but (R) is true.
Assertion (A) is false because, in the case of shares issued on a pro-rata basis, excess money received at the time of application can be utilized until allotment and thereafter refunded. However, Reason (R) is true, as companies may pay interest on calls in advance. Hence, the correct option is 4.
Question : Assertion (A): A new business is likely to have lesser goodwill. Reason (R): Goodwill is an intangible asset.
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
Question : Assertion: Unemployment and poverty go hand in hand. Reason: Poverty is a result of unemployment
Option 2: Both Assertion (A) and Reason (R) are true and 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
Question : Assertion: Physical capital is tangible in nature Reason: Physical capital can be seen and touchable.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is 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.
Question : Assertion (A): The Current Ratio is unaffected by debt redemption. Reason (R): Debentures that are redeemable within a year have an impact on the current ratio.
Option 4: Assertion (A) is False and Reason (R) is true.
Question : Assertion (A): Human capital formation is a stock concept. Reason (R): Variables that are measured at a specific time are referred to as stocks.
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