Question : Assertion A:- In many situations, the accountant has to make a choice out of alternatives available, e.g., choice in the method of inventory valuation, choice in the method of depreciation (straight line or written down value)
Reason R: - The subjectivity is inherent in personal judgment, the financial statements are, therefore, not free from bias. It is a limitation of financial statements.
Option 1: Both Assertion A and reason R are correct but reason R is not the correct explanation of Assertion A
Option 2: Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A
Option 3: Both Assertion A is correct but the reason R is not correct
Option 4: Both Assertion A and reason R are not correct
Correct Answer: Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A
Solution : Answer = Both Assertion A and reason R are correct but reason R is the correct explanation of Assertion A
In many situations, the accountant has to make a choice out of alternatives available, e.g., a choice in the method of inventory valuation, or a choice in the method of depreciation (straight line or written down value). The subjectivity is inherent in personal judgment, the financial statements are, therefore, not free from bias. It is a limitation of financial statements. Hence, the correct option is 2.
Question : Read the following statements of Assertion (A) and Reason(R) and choose the correct alternative: Assertion (A): Consumer must save environment by avoiding waste,littering and contribution to pollution. Reason (R): It is a right of consumer to save the
Question : Assertion (A): A single cropping system was replaced by a multi-cropping system as a result of crop diversification. Reason (R): Due to a rise in market risk brought on by price fluctuations, it decreased farmers' revenue.
Question : Assertion (A): High levels of human capital imply not only high earning potential but also a shift in the social and economic landscape. Reason (R): It alters one's style of thinking and enables one to come to informed and logical judgments.
Question : Assertion: The management process is continuous and ongoing.
Reason: It involves a series of interconnected functions that are performed repeatedly.
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